Carnival is selling 6 cruise ships after a $4.4 billion loss, a sign of the industry’s bleak future in the coronavirus pandemic

Princess Cruises Coral Princess
The Coral Princess, part of Carnival Cruises’ Princess Cruise line. Princess Cruises
  • Carnival Cruises, which includes brands such as P&O, Princess Cruises and Cunard, is to sell 6 ships amid a downturn caused by the coronavirus crisis.
  • The industry has been hammered by COVID-19 after multiple outbreaks occurred at sea, and ports around the world closed to cruise ships. 
  • Carnival said it lost $4.4 billion in the past three months and doesn’t know when it can resume normal operations.

Carnival is planning to sell 6 of its cruise ships after reporting a loss of $4.4 billion in the second quarter of 2020, as the coronavirus crisis continues to hammer the cruise industry.

The company, which includes major cruise lines such as Cunard, P&O and Princess Cruises, reported on Thursday that it was “accelerating” planned sales of the ships.

It reported a massive drop its revenues in the three-month period to May 31, taking in $700 million, a fraction of its $4.8 billion revenues for the same period in 2019, The Guardian reported.

The company said it was “unable to definitively predict” when cruises will back to normal, making it impossible to make an earnings forecast.

All its cruises were suspended in mid-March after onboard outbreaks were reported. Across the industry, by March 25 there had been coronavirus outbreaks on 36 cruise ships worldwide, as Business Insider reported.

Although Carnival has offered customers the chance to pause their bookings for a future date, half of them requested a cash refund, the company said.

Meanwhile, administration and keeping ships afloat still cost the company $250 million a month.

An estimated 21,000 ship staff are still stuck on board 49 ships which cannot dock due to governmental restrictions, the company said.

P&O Cruises says agents ‘vital’ as staff claim trade teams under threat

Carnival UK | Frylow

The boss of P&O Cruises has insisted agents’ support will be “vital” to developing the brand’s restart plans, despite claims the field sales team has been cut as part of a restructure at parent Carnival UK.

Paul Ludlow, president of P&O Cruises, said its commitment to the trade “remains as strong as ever” as a consultation that could see up to 450 jobs lost continues.

His comments came in response to claims from members of staff at Carnival UK that regional agent-facing sales teams at P&O and sister brands Cunard and Princess Cruises were set to be removed.

One staff member under consultation, who asked to remain anonymous, said the move was “completely the wrong decision”, claiming 60% of P&O Cruises’ UK bookings come from travel agents.

Agents also told Travel Weekly of redundancies in the trade sales teams, as well as senior staff going on long-term sabbaticals.

Carnival UK said no decisions would be made or communicated until the consultation finishes at the end of June.

However, a letter sent to staff confirmed it would not be making use of the government’s extended furlough scheme, which it said would “delay the inevitable need we have to right-size our business in order to sustain and protect it for the future”.

The letter also confirms sabbaticals were being discussed for some roles that were needed in the company’s long-term structure but not in the short term.

P&O Cruises has cancelled all sailings up to October, Cunard until November and Princess Cruises has cancelled all summer sailings as the industry battles the effects of the Covid-19 pandemic.

In a statement, Ludlow said: “The Covid-19 pandemic has not only affected the holidays of our guests but it has also impacted every part of our business; our future deployment; the guest experience; our supply chain and our people on ship and on shore. During our pause in operations we have tried to create as much certainty and stability as possible for our colleagues in the office as well as those on board.

“Unfortunately though, and similar to many businesses, as Covid-19 has continued to impact our way of life it is necessary to make changes to our organisation to build a stable platform for the time we phase our ships back into service and for future growth.

“We appreciate it is a very difficult and unsettling time for everyone but we are following a clear and fair consultation process and considering the suggestions put forward by each individual.

“I am so proud to see so many examples of absolute professionalism throughout this period with everyone supporting each other. The process is still continuing and no decisions will be made or communicated until we reach the conclusion at the end of the month.

“Our commitment to the travel trade remains as strong as ever and support from agents will be vital as we develop our re-start plans.”

How Is COVID-19 Affecting New Cruise Ship Launches?

ultramarinecoviddelay

Due to complications related to the COVID-19 pandemic, new ship production has been delayed.

Credit: 2020 Quark Expeditions

This month was supposed to see the launch and naming of Princess Cruises’ newest Enchanted Princess, but the vessel and many others have been delayed due to the ramifications of the current COVID-19 pandemic. As shipyards around the world have had to temporarily close, arrivals of several exciting cruise ships have been pushed back.

So far there is little talk of halting the production of new ships, but any ships that are not already finished or under construction are certainly subject to that. For the time being, though, these are the most noteworthy ships facing delays.

Celebrity Apex, Celebrity Cruises

Celebrity Cruises’ Celebrity Apex, the sister ship to Celebrity Edge, was finished and ready to set sail in March, but its festivities were pushed back. Now the ship has no voyages scheduled until this coming August. Third, in the Edge class, Celebrity Beyond is still scheduled for a 2021 debut.

Crystal Endeavor, Crystal Cruises

Not as lucky on the delivery front is Crystal Cruises’ Crystal Endeavor. The expedition vessel was originally delayed to November, but the ship has now been pushed back to 2021 due to closures at the MV Werften shipyard in Wismar, Germany.

Enchanted Princess, Princess Cruises

The ship’s naming ceremony was initially scheduled for June 30 in Southampton, England, but no new launch date has yet been set. In the meantime, all of its cruises have been cancelled through July 31.

Evrima, The Ritz-Carlton Yacht Collection

Last of the small ships for a while, The Ritz-Carlton Yacht Collection’s new Evrima had already been delayed until June of this year. Then COVID-19 pandemic forced the ship and new line into 2021. According to Cruise Critic, neither will debut until April 22, 2021.

Fridtjof Nansen, Hurtigruten

Like the Silver Origin, Hurtigruten’s latest Fridtjof Nansen — sister ship to the recently launched Roald Amundsen — was supposed to be sailing from March onwards. However, the entire line is currently on hold until June 16.

Le Bellot, Ponant

Even new expedition ships such as Ponant’s Le Bellot, which according to Seatrade Cruise News also already launched in the first quarter, are having to temporarily hold tight. In fact, Ponant and its subsidiary Paul Gauguin Cruises are suspending service until further notice, leaving future sister-ship Le Jacques Cartier up in the air as well.

Mardi Gras, Carnival Cruise Line

Also showing from November onwards is Carnival Cruise Line’s largest ship ever, the new Mardi Gras. The ship was previously delayed by the Meyer Turku shipyard in Finland even before COVID-19. At this time, it is unknown if the pandemic will cause any further delays.

National Geographic Endurance, Lindblad Expeditions-National Geographic

The new National Geographic Endurance from Lindblad Expeditions-National Geographic has not yet had its moment to shine either. The ship successfully finished its sea trials back in February anticipating an April launch, but the line’s operations are now paused until July.

Odyssey of the Seas, Royal Caribbean International

Later in the fall, Royal Caribbean International was preparing to launch the Odyssey of the Seas as its second Quantum Ultra-class vessel. It is not entirely clear if the ship will be delayed at all, but for now, it is still on pace to debut in Fort Lauderdale, Fla., in November.

Scarlet Lady, Virgin Voyages

Before the viral outbreak led to widespread sailing suspensions, Virgin Voyages’ first ship, Scarlet Lady, was completed and making the rounds in the U.K. Now the ship is anchored off Fort Lauderdale, Fla., awaiting its North American debut, which has now been rescheduled for Oct. 16. The brand-new line’s second ship, Valiant Lady, is still on the calendar for 2021.

Sea Cloud Spirit, Sea Cloud Cruises

Cruise Industry News is reporting that Sea Cloud Cruises’ Sea Cloud Spirit, which was initially slated for an Aug. 29 maiden voyage, has now been delayed until further notice from the cruise line.

Seven Seas Splendor, Regent Seven Seas Cruises

TravelAge West was scheduled to sail on Regent Seven Seas Cruises’ latest Seven Seas Splendor, but the first wave of the pandemic caused the luxury line to postpone the preview voyage. Regent is planning to resume service in August.

Silver Moon, Silversea Cruises

Silversea’s upcoming Silver Moon — sister ship to Silver Muse — was set to debut in August. The luxury line has had to push that back further, though, due to delays at the Fincantieri shipyard in Ancona, Italy. All its inaugural sailings have been cancelled until Oct. 2, but that date is subject to change.

Silver Origin, Silversea Cruises

Silversea Cruises’ new Silver Origin expedition ship set for the Galapagos was supposed to be operating already. Although not yet sailing in its target destination, the shipyard was able to finish building it for delivery to the luxury line this month.

Ultramarine, Quark Expeditions

Quark Expeditions’ latest Ultramarine has now been pushed back to a 2021 debut as well, but it too is chugging along at the Brodosplit shipyard in Croatia. Just last month the new expedition ship was floated out ahead of final outfitting.