Posted on 09/15/2020 11:50:07 AM PDT by Capt. Tom
Carnival Corp. now says it is getting rid of 18 ships, up from the 13 ships it planned to dispose of in early July. The company did not reveal which ships would be sold or scrapped. Eight have already left the fleets of Carnival’s nine cruise brands, which operate more than 100 ships.
“We continue to take aggressive action to emerge a leaner, more efficient company,” Carnival Corp. President and CEO Arnold Donald said. “We are accelerating the exit of 18 less-efficient ships from our fleet. This will generate a 12 percent reduction in capacity and a structurally lower cost base, while retaining the most cash generative assets in our portfolio.”
Carnival Corp. made the announcement as part of a financial summary in a filing to the SEC. The filing reported a U.S. GAAP net loss of $2.9 billion for the quarter ending Aug. 31 and an adjusted net loss of $1.7 billion.
We will emerge with a more efficient fleet, with a stretched-out newbuild order book and having paused new ship orders, leaving us with no deliveries in 2024 and only one delivery in 2025, allowing us to pay down debt and create increasing value for our shareholders,” Donald said.
The company’s monthly average cash burn rate for the third quarter 2020 was $770 million and is expected to be about $530 million for the fourth quarter. Since cruising ground to a halt in mid-March due to the COVID-19 pandemic, Carnival Corp. has taken actions to preserve cash and secure additional financing to increase its liquidity.....
The company said it is unable to predict when the entire fleet will return to normal operations, although a Carnival Cruise Line representative hinted at a possible return with short cruises in November.
(Excerpt) Read more at travelpulse.com ...
Excerpt below from the MOTLEY FOOL Sept.16 2020 -Rich Smith
Because Carnival is cutting the size of its fleet so much, capacity in this industry will also be cut. This will help to eliminate oversupply, and minimize the risk of a price war breaking out as cruise lines battle for their fair share of vacationers' discretionary dollars once cruising opens up again. In so doing, Carnival has essentially "taken one for the team," and pulled forward the day when cruising will once again become a profitable industry.
That's actually good news for Carnival -- and for Royal Caribbean and Norwegian Cruise as well. If you ask me, it's the reason these stocks are going back up today....
I agree it’s good for the fleets to shrink, but they sunk a ton of money before responding properly, and I’m still not sure that they fully understand the situation.
Time will tell...
Ship beaching itself.
https://youtu.be/ToqtoaRE114?t=162
Nice parking job.
Carnival Imagination Beaching
https://www.youtube.com/watch?v=qq-e6UmHNQU
On Carnival you get to have sex with the crew, too. I seem to recall the lady recreation director and one of the nurses.
Yes. I can vouch for that....................
A lot of the ships ordered to be delivered shortly have been canceled, or put off for years.
That will give the cruise lines a chance to cancel some of those put off for years, if the number of cruisers doesn't reach expectations.-Tom
Wait. It took a week to get to Paris from Amsterdam on a high speed train?
Nah, it was a little faster than that. We hit 193mph on the Amsterdam to Paris run. Obviously, we spent a week in Paris and then a week in London.
The night time cruise was great. Here are some photos of it and some other stuff in Budapest from our blog.
https://ourrvadventures.com/2019/04/29/
https://www.youtube.com/watch?v=qq-e6UmHNQU
And yesterday; Carnival announced they are selling two more ships to the scrappers-The Inspiration and the Fascination. That will bring the downsizing to 20 ships. - Tom
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.