By Jonathan Levin (Bloomberg) — Carnival Corp., the largest player in a cruise industry reeling from the effects of the coronavirus, said it expects a loss this fiscal year and is taking steps to improve liquidity.
The efforts include cutting investments and expenses and looking for additional financing, Carnival said in a statement Monday. The company said it provided notice on Friday to borrow about $3 billion for six months under an existing credit facility, fully drawing down the credit line to meet working capital, general corporate and other needs.
The spread of the coronavirus has made it impossible to project earnings, the company said, but it expects to have a loss in the year ending Nov. 30.
The cruise industry has been among the hardest hit in the world by the virus. On Friday, President Donald Trump tweeted that he had asked U.S.-based cruise lines to suspend voyages to halt disease transmission at sea. The move came after two major episodes of coronavirus spread on Carnival’s Princess Cruises and left the industry — which has massive fixed costs to meet — without passengers to generate revenue.
Carnival shares fell as much as 18% to $14.50 in New York trading Monday.
By Jonathan Levin (Bloomberg) — Cruise-line stocks led by Norwegian Cruise Line Holdings Ltd. climbed Friday after the Senate passed legislation to help the companies resume sailings to Alaska, a key...
The U.S. Senate on Thursday unanimously passed legislation to temporarily waive requirements of the Passenger Vessel Services Act (PVSA), allowing large cruise ships to sail to Alaska without making a...
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.