Royal Caribbean Suspends U.S. Cruises, Joining Rivals

March 13 (Reuters) – Royal Caribbean Cruises Ltd said on Friday it was suspending its cruises in the United States for 30 days, an hour after Norwegian Cruise Line Holdings Ltd said it suspended all its cruise voyages through April 11.

Earlier larger peer Carnival Corp’s Italy-based unit Costa Cruises halted its trips until April 3. Carnival’s other subsidiary Princess Cruises had suspended its voyages for two months on Thursday.

Costa Cruises accounted for 15% of Carnival’s overall capacity as of Nov. 30, offering voyages in Asia and Europe, including the Mediterranean.

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The Princess Cruises unit has been in the spotlight after its Diamond Princess and Grand Princess ships were quarantined after they became hotbeds for coronavirus infections.

Norwegian, however, said no confirmed case of the virus was reported across its 28 ships.

Walt Disney’s Disney Cruise Line and Finland’s Viking Line have also temporarily paused operations as the global cruise industry battles cancellations in the wake of the fast-spreading virus.

The outbreak, described by the World Health Organization as a pandemic, has infected thousands in the Mediterranean countries such as Italy, where it has claimed more than 1,000 lives.

Carnival said it was checking if their guests are aged over 70 years and would deny entry to people with chronic or severe medical conditions.

Separately, credit rating agency S&P Global said it lowered the credit ratings on Carnival and its unsecured debt to ‘BBB’ from ‘A-‘, on expectations of a significant loss in revenue and cash flow in 2020.

Stocks of cruise operators are among the worst hit, with Carnival, Norwegian and Royal Caribbean down between 66% and 81% this year through Friday’s close. (Reporting by Praveen Paramasivam in Bengaluru; Editing by Sriraj Kalluvila and Krishna Chandra Eluri)

(c) Copyright Thomson Reuters 2019.

Royal Caribbean Comments on Liquidity Actions and 2020 Outlook

Navigator of the Seas

Royal Caribbean Cruises today announced that due to the spread and recent developments related to the COVID-19 outbreak, the company has increased its revolving credit capacity by $550 million bolstering the company’s liquidity, according to a press release.

The company is pursuing additional actions to improve its liquidity by reducing capital expenditures, operating expenses and taking other actions to improve liquidity by at least a further $1.7 billion in 2020.

The company is also planning reductions to the 2021 capital expenditures and operating expenses.

The company had previously communicated that its 2020 guidance did not include the impact of the COVID-19 outbreak.

Given the recent government actions and the heightened impact and uncertainty of changes in the magnitude, duration and geographic reach of COVID-19, the company is withdrawing its first quarter and full-year 2020 guidance.

“These are extraordinary times and we are taking these steps to manage the company prudently and conservatively,” said Richard D. Fain, chairman and CEO.  “I am proud of the work our teams are doing to address this unprecedented situation.”

Coronavirus: Cruise lines adopt strict new screening measures

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Passengers face the prospect of being denied boarding onto cruise ships due to enhanced screening measures being adopted by global cruise lines in response to the spread of coronavirus.

The new policies have been outlined by cruise industry body Clia.

The association said: “With strict measures in place, as guided by national and international health authorities, Clia and its member lines, in concert with pronouncements from the World Health Organisation, do not believe restrictions on the movement of ships are justified.”

Clia president and chief executive Kelly Craighead added: “The adoption of these measures further demonstrates the cruise industry’s unique ability to respond quickly as circumstances evolve.

“We remain in close contact with local governments around the world, and while we regret that these changes will result in the denial of boarding for some of our guests, travellers should know that their health and safety is the absolute priority for the industry.”

Under the changes, ships will deny boarding to anyone who has travelled from, visited or transited via airports in South Korea, Iran, China, including Hong Kong and Macau, plus areas in Italy under lockdown within 14 days prior to embarkation.

Lines will also conduct illness screening for people who have travelled from, visited or transited via airports in any destinations listed on the US Centers for Disease Control and Prevention (CDC) coronavirus disease list page within 14 days before embarkation.

“Illness screening includes symptom history checks for fever, cough and difficulty breathing in the 14 days before embarkation and taking of temperature,” Clia said.

Passengers will also be denied boarding if they have had contact with, or helped care for, anyone suspected or diagnosed as having the virus or who are subject to health monitoring for possible exposure to Covid-19 within two weeks prior to sailing.

Companies will conduct pre-boarding screening “necessary to effectuate these prevention measures”.

Enhanced screening and initial medical support will be provided to anyone exhibiting symptoms of suspected coronavirus.

The association added: “In co-ordination with cruise lines, medical experts and regulators around the world, Clia and its member lines will continue to closely monitor for new developments related to Covid-19 and will modify these policies as necessary with the utmost consideration for the health and safety of passengers and crew.