Carnival to sell its ships for survival

By: Miguel A. Rodriguez

09:45, 14 September 2020

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Despite difficulties, Carnival manages to stay afloat.

In these uncertain pandemic times, companies of all sorts have been affected. We’ve seen what’s been happening in the aviation industry.  Now we will talk about what’s been happening on the sea. With Carnival, to be more specific.

Earlier this week, Carnival Cruise Line announced that 13 ships would be removed from its all brands, and the deliveries for news ships will be delayed. The process started last month when Carnival sold one ship and has made agreements to dispose of another 8 in the next 90 days.

Moreover, Carnival is looking to raise $1.26 billion in debt to keep its operations going. As for 2021, it canceled some sailings due to the pandemic, and postponed others until 2022.

The second quarter wasn't particularly strong for the company, reporting a net loss of $4.4 billion. The revenue came in at $0.7 billion, compared to last year's $4.8 billion. Still, Carnival Cruise Line ended with $7.6 billion in cash. The company will resume its activity at a future date per provisions from the government and the health authorities.  

Carnival’s stock price was up 16% during the Wednesday session, but it lost 2.8% in after-hours trading. 

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Sources: marketwatch.com, seekingalpha.com, cruiseindustrynews.com


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