Posted on 09/03/2020 12:34:05 PM PDT by Capt. Tom
Could the end be near for your favorite cruise line?
Given that most cruise companies havent operated a single voyage in nearly six months, and its unlikely that cruising will resume in a meaningful way anytime soon, its perfectly reasonable for you to worry about such a thing.
But we have some good news ...The three big, publicly traded companies that operate most of the biggest lines, including Royal Caribbean, Carnival Cruise Line, Norwegian Cruise Line and Princess Cruises, arent in imminent danger of sliding into bankruptcy let alone collapsing completely. Indeed, all three of the companies Carnival Corporation, Royal Caribbean Group and Norwegian Cruise Line Holdings currently have enough cash on hand to muddle along for well over a year without a single dollar of revenue.
The biggest of the three, Carnival Corporation, currently is burning through around $650 million per month without any ships sailing a staggering sum. Carnival Corporation had $7.6 billion in liquidity cash and cash equivalents as of May 31, when it closed the books on its second quarter. It added another $2.6 billion in liquidity in June through a senior secured loan.
The two other big, publicly traded cruise companies are in a similar position.
During a conference call with Wall Street analysts in August, Royal Caribbean CFO Jason Liberty said the company was burning through about $250 to $290 million a month during the cruising shutdown but had liquidity of more than $4 billion.
Norwegian Cruise Line Holdings in August said it was burning through about $160 million a month but had liquidity of $2.8 billion. in other words, the two companies had enough cash and cash equivalents on the books in August to survive nearly 14 and 18 months, respectively, with no cruising.
(Excerpt) Read more at thepointsguy.com ...
With the events now in charge anything can happen. -Tom
Considering this isn’t going to end anytime soon, they will be out of business once the cash is burned. They have about 12 month’s cash supply, at most. That ends by March 2021.
If the Cruise Lines get too deep into the borrowed money they have to watch out for the loaners (creditors) forcing the Cruise Lines into bankruptcy (reorganization) so the creditors don't lose the billions they loaned out to them.
Time makes all things clear. - Tom
“Looks good for the 3 big cruise lines to hang on economically. “
If they ever sail again, aren’t we the traveler going to be burdened with all this repayment ? Won’t the fares be much higher ?
Whew. March 2021?
Our final payment for September 2021 Alaska sailing is due in June.
Oh well. I guess we can spend it in Vegas. If the place is open.
The fare top limit is whatever you are willing to pay.
I’m looking forward to them converting their cruise ships to condos. The special assessments could be a killer though.
“Lady’s and gentlemen, we struck an iceberg and will have to charge a special assessment in order to repair the hull. Each unit will be responsible for $10,000. The assessment will be added to your monthly payment. That is all.”
what ship are you going on ?
CVI a creditor has taken over the popular British cruise line Cruise & Maritime Voyages
Because of the popularity of the Cruise Line it looks like the Creditor CVI wants to give cruising a try.
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Christian Verhounig, the owner of CVI, stated: The global pandemic had a devastating impact on Cruise & Maritime Voyages once flourishing, expanding and profitable business.
Having developed a much-loved brand over the past decade and hugely popular value-based niche no-fly cruise product, we have been simply overwhelmed by the outpouring of support and pleased to re-launch the business.
bookmark
Some probably got stimulus funding
We were supposed to be on a Holland America (Carnival) Cruise to Alaska right now, but of course that went away.
So now we’re rebooked for May.
We went a few years ago. One of my family’s top three vacations! You will love it!
“Some probably got stimulus funding”
I don’t think so (not that it bothers me). My understanding is that if they want to fly their ship under a foreign flag, then fine, as that flag to bail you out. Of course that wasn’t going to happen.
Actually this will be our 2nd cruise, 3rd time for me, and 4th time for my wife.
We did a Holland America cruise in 1998, and then spent 5 months up there in 2008 as full-time RV’ers. Plus my wife was an Air Force brat there in the early 60’s.
Also one of our favorite places.
https://cruisefever.net/worlds-first-affordable-cruise-ship-can-live-cabins-condos-start-255000/
“In late June, Spanish Cruise line Pullmantur filed for bankruptcy and its three-ship fleet, including the MS Sovereign, formerly Royal Caribbeans Sovereign of the Seas, once the worlds largest cruise ship, was sent to a scrapyard in Turkey.”
I was reading other articles on cruise line bankruptcies...three ships going to the scrap yard. Yikes! That’s kind of sad.
One thing that gets lost in these bankruptcies is the collateral damage to people who work directly for the cruise lines and those others affected by the covid -19 uncertainties in cruising.
I found out last night my travel agent has closed her EXPEDIA travel agency because of the 5K/MO rent, and the continuous delays and re-scheduling of cruise ship departures. It was too much to deal with, and no end in sight. -Tom
Ruby Princess. I’ll be one of the big dumb white guys in the sauna. Wish they had coed saunas, they do have decent steam baths tho.. I hear heat kills COVID.
We’ve been there quite a few times over the years, from Expo86 in Vancouver to early last year. Usually fairly calm sailing, no noroviruses (yet). I wish they’d bring back midnight buffets and let wifey win a Jackpot Bingo before we make the Big Leap to another dimension.
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