Posted on 05/16/2020 11:59:17 AM PDT by Capt. Tom
Cruise lines are burning anywhere from $100 million to $1 billion a month as they wait on cruises to resume. Carnival Corporation, Royal Caribbean Cruises, and Norwegian Cruise Line Holdings have all raised money to stay afloat during this unprecedented shutdown due to the COVID-19 pandemic.
It’s been over two months since the last cruise ship departed from Miami on a revenue sailing. When Navigator of the Seas left Miami for a three night cruise to the Bahamas on March 13, the pause in cruises was originally scheduled to last for 30 days.
Although cruise lines have given tentative start dates, no one knows for sure when cruises will start back up as the dates keep getting pushed back. It’s important to note that these start up dates are not set in stone and will likely continue to change. How much cash and liquidity do each of the major cruise lines have and how long can they go without cruises starting back up?
None of the cruise lines are in danger of filing for bankruptcy anytime soon. Norwegian Cruise Line Holdings is now in the best shape of the major three cruise lines after raising over $2 billion last week. Norwegian is currently burning $70-$110 million each month. The company now has enough cash to last until late 2021, even after refunding $67 million to passengers each month from canceled cruises.
Royal Caribbean has roughly one year worth of liquidity. The world’s second largest cruise company is currently burning a little over $300 million a month and they have just under $3.5 billion in capital. Royal Caribbean Cruises sent out a press release earlier this week stating that they are offering 28 of their cruise ships as collateral to secure additional liquidity to make it through this tough time.
Carnival Corporation, the world’s largest travel leisure company with nine cruise lines and over 100 cruise ships, was burning roughly $1 billion a month. In a recent call, Carnival stated that they have enough cash to last through the end of 2020 without cruises resuming. However, the company took additional action this week announcing a combination of layoffs, furloughs, reduced work weeks and salary reductions across Carnival Corporation, including senior management. These moves will contribute hundreds of millions of dollars in cash conservation on an annualized basis.
As you can see, none of the major cruise lines are in danger of filing for bankruptcy anytime in the near future. If one did have to file in 2021, they will likely file for Chapter 11, allowing them to stay in business and reorganize. The cruise industry is a significant contributor to the U.S. and global tourism sectors, according to the Cruise Lines International Association (CLIA), with economic impact in the U.S. exceeding well over $50 billion in total contributions.
On a global scale, the economic output due to the cruise industry continues to produce new jobs and income, generating a total global output of over $150 billion and supporting over 1.2 million total jobs.
Carnival Corporation’s cruise lines: Carnival Cruise Line, Princess Cruises, Holland America Line, Cunard, Seabourn, Costa Cruises, AIDA Cruises, P&O Cruises, & P&O Australia.
Royal Caribbean’s cruise lines: Royal Caribbean, Celebrity Cruises, Azamara, and Silversea Cruises. The company is also a 50% owner of TUI Cruises and a 49% shareholder in Pullmantur Cruises.
Norwegian Cruise Line Holdings’ cruise lines: Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises.
I heard they weren’t letting people serve them selves anymore!!!!
Looks beautiful and interesting. Thanks. Maybe when I retire I’ll get to take a cargo cruise. Some go for 30 or 60 days, even longer, and get to see the ports of the world.
The cruise lines are coming up with all kinds of grasping at straws solutions to appease Governments, Port Authorities, and Medical Authorities etc.
I believe some of these solutions will really reduce the number of cruisers.
For example- no buffet-medical tests before and during the cruises,- social distancing that will require less passengers and crews on the cruise ship,- reserving a time to use the crowded swimming pools,- social spacing when boarding and leaving the ships.
All of the above I have seen suggested by cruise lines.
And I am sure the shore excursions will be affected also.- Tom
“The cruise lines are coming up with all kinds of grasping at straws solutions to appease Governments, Port Authorities, and Medical Authorities etc.”
If they go overboard (no pun intended) with all the PC crap to please governments, they’ll lose tens of thousands of customers, us included. The ironic thing is that once the November election is over, everyone will forget about this and it won’t be “a thing” any more.
The purpose of the distancing, masks, lockdown, etc., is to disrupt the country and end Trump. After November, whatever happens, the silliness won’t matter any more.
“once the November election is over, “
Funny you mention that. We enjoy cruising in the week or two leading up to and including the election day. Best time to NOT SEE TV commercials and lies about candidates!
“Best time to NOT SEE TV commercials and lies about candidates!”
Speaking of the lies ... We were on a cruise back when Cheney shot that guy in a hunting accident. It was so long ago that the ONLY “news” outlet on Princess’ CCTV was CNN. We were ready to jump overboard listening to CNN’s coverage.
The cruise lines will be watched by the Lamestream media and if there is any downside to cruising it will get a platform, and a big deal made of the problem by the press.
The cruise lines have to negotiate norovirus -corona virus outbreaks and the anticipated problems people have as a matter of course, like drownings, rapes, robberies , murders, over boards, etc.
IMHO cruise lines have to bolster up their PR teams, when cruising returns. They will have to be ready to offset the press portrayal of any cruise ship incident. - Tom
Royal Caribbean Will Resume Cruise Operations in August
Emrys Thakkar - May 20, 2020
Royal Caribbean has announced an extension on its pause on operations through July 31 with cruises now starting in August.
Norwegian Cruise Line Will Now Begin Sailings in August
Emrys Thakkar - May 20, 2020
Norwegian Cruise Line has announced a further extension on its suspension on cruises with sailings now starting in August 2020.
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