Cruise Operator News

06 Oct 2020

Royal Caribbean Extends Suspension of Sailings until November 30

© Debbie Ann Powell / Adobe Stock

Royal Caribbean Cruises Ltd has extended suspension of sailings until November 30, excluding those originating from Hong Kong, the U.S.

17 Sep 2020

Norway's Hurtigruten Suspends All Remaining 2020 Cruises

A Hurtigruten ship (File Photo: Hurtigruten)

Norway's Hurtigruten has called off its remaining cruises this year due to the rise in COVID-19 cases in Europe and the Americas, the company said on Thursday."Our goal is to resume operations in January 2021," the company said in a statement.The decision affects Hurtigruten's so-called expedition cruises, which often take passengers into Arctic or Antarctic waters, though its business of shipping goods and people between ports along the Norwegian coast will continue.The company was the first cruise operator worldwide to return an oceangoing cruise ship to service in mid-June…

15 Sep 2020

Carnival's Q3 Losses to Reach Almost $3 Billion

© dbvirago / Adobe Stock

Carnival Corp said on Tuesday it expects to post a loss of $2.9 billion in the third quarter, hurt by the suspension of cruises due to the COVID-19 pandemic, sending the cruise operator's shares down 3% in premarket trade.The cruise business is one of the worst affected from the health crisis and has forced operators, including Japan’s Luminous Cruise, to file for bankruptcy, or to raise money even at the cost of pledging ships.Carnival, which has already raised billions in debt…

17 Aug 2020

Carnival Hit by Ransomware Attack

© James Thew / Adobe Stock

Cruise operator Carnival Corp said on Monday it launched an investigation into a ransomware attack on one of its brand’s information technology systems.Carnival, which operates AIDA, Carnival and Princess cruises among others, in a regulatory filing said the attack included unauthorized access to personal data of guests and employees.The company did not identify the brand that was affected and declined to provide more details, as the investigation process was at an early stage.The attack adds to the woes of the company that has been already struggling with suspension of its cruises for months

13 Aug 2020

AIDA Cruises Seeking German Government Aid

(Photo: AIDA Cruises)

Carnival Corp’s AIDA cruise operator is among a list of companies seeking state aid from the German government, the Business Insider website reported on Thursday.AIDA is seeking about half a billion euros ($591 million) in state aid, Business Insider said, citing a government list of companies requesting support, which also includes shipbuilder MV Werften and steel producer Georgsmarienhuette.The finance ministry declined to comment.AIDA is examining whether financing schemes offered by the government are suitable for the company, a spokesman said, adding he was not aware of any considerations

10 Aug 2020

Royal Caribbean Reports Bigger-than-expected Loss

(Photo: Royal Caribbean)

Royal Caribbean Group reported a bigger-than-expected quarterly loss on Monday, as the cruise operator suffered from a coronavirus-driven halt to sailings that is now on course to last deep into the second half of 2020.The company’s shares, which have lost over 60% of their value this year, fell nearly 2% in premarket trading.Royal Caribbean, which dropped “Cruises” from its corporate name last month, expects to burn $250 million to $290 million of cash on average per month, while its operations are suspended during one of the industry’s worst periods in history.Royal Caribbean, which has pled

03 Aug 2020

Norway Suspends Cruises Carrying 100+ People After Outbreak

MS Roald Amundsen (File photo: Hurtigruten)

Norway stopped all cruise ships with more than 100 people on board from disembarking at its ports from Monday, after an outbreak of COVID-19 was reported late last week on a ship that had already disembarked at the port of Tromsoe.At least 41 passengers and crew who were on board the cruise ship MS Roald Amundsen, operated by Norwegian company Hurtigruten, have so far tested positive for the coronavirus, while hundreds more on board were told to self-isolate for 10 days, local public health officials said on Sunday.Norway is in touch with Germany…

16 Jul 2020

Norwegian Cruise Line Warns of 'Insignificant' Q2 Revenue

© Erin Cadigan / Adobe Stock

Norwegian Cruise Line Holdings Ltd said on Thursday it expected little revenue in the second quarter, as the COVID-19 pandemic brought global tourism to a standstill and forced the company to suspend all voyages for months.Shares of the cruise operator, which also forecast a full-year loss, fell about 8% in premarket trading.Crushed by a wave of cancellations and steep fall in bookings, the company said it plans to raise about $925 million in two new bond offerings to ride out the rest of the year and repay a $675 million credit line.It also plans on raising another $250 million in a new equit

15 Jul 2020

Carnival to Raise $1.26 Billion in Debt to Deal with COVID-19 Impact

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Carnival Corp is planning to raise about $1.26 billion in a bond offering, the beleaguered cruise operator said Wednesday as it struggles to stay afloat after the COVID-19 pandemic impacted its business.The bond offering is split into a $775 million tranche paying an annual coupon of 10.5%, and 425 million euro-tranche ($484.93 million) paying 10.125%.The senior secured notes are due 2026, with the offering expected to close on July 20, Carnival said.Carnival said the notes will be secured by a second-priority lien…

10 Jul 2020

Carnival to Resume Voyages in Phases

© Ruth P. Peterkin / Adobe Stock

Carnival Corp said on Friday it was planning to resume operations in a phased manner and would operate with a smaller fleet on its return, months after suspending trips due to the COVID-19 pandemic.The company’s shares, that have lost more than two-thirds of their value this year, rose as much as 11% to $16.12 in morning trading.The world’s largest cruise operator said it has reduced capital expenditures by more than $5 billion over the next 18 months and raised a couple more billions to navigate through the virus outbreak.The cruise business has been one of the worst hit after several ships,

24 Jun 2020

Carnival's Credit Rating Cut to Junk Status by S&P

File photo: Carnival Corp

Ratings agency Standard & Poor’s on Tuesday downgraded bonds of Carnival Corp to junk status, forecasting continued weak demand for the cruise industry hammered by the COVID-19 pandemic.Standard & Poor’s cut its rating on the world’s biggest cruise operator’s secured bonds to ‘BB+’ from ‘BBB-‘, and its unsecured bonds to ‘BB-‘ from ‘BBB-‘. Both are now regarded as non-investment grade or junk bonds.Carnival’s overall issuer credit rating was also lowered to ‘BB-‘ from ‘BBB-‘.

19 Jun 2020

Carnival Corp Names Weinstein COO

Josh Weinstein (Photo: Carnival Corp)

Carnival Corp on Friday named Josh Weinstein as its new chief operations officer as the company continues to grapple with the global COVID-19 pandemic.Reporting to Carnival Corporation President and CEO Arnold Donald, Weinstein's responsibilities will include oversight of major operational functions, including global maritime, global ports and destinations, global sourcing, global IT and global auditing.Weinstein will retain oversight of Carnival UK, the operating company for P&O Cruises and Cunard, which he managed directly for the past three years.

18 Jun 2020

Carnival Posts $4.4 Billion Quarterly Loss

(File photo: Carnival Corp)

Carnival Corp reported a quarterly net loss of $4.4 billion on Thursday, as the cruise operator took major write-downs on the sale of some ships and was virtually crippled by the global COVID-19 pandemic.Shares of the Florida-based company, which also warned of a net loss for the rest of the year, fell over 4% in premarket trading.Cruise line operators were among the hardest hit in the global health crisis and the industry had some of the largest early high-profile infections.The company said it expects to burn cash at the rate of about $650 million per month for the second half of 2020 and wa

20 May 2020

Royal Caribbean, Norwegian Extend Cruise Suspensions

(Photo: Royal Caribbean)

Royal Caribbean Cruises Ltd and Norwegian Cruise Line Holdings Ltd on Wednesday extended the suspension of voyages by another month until July 31 amid sailing curbs imposed to check the spread of the coronavirus.The cruise industry has faced the brunt of the health crisis as major outbreaks in ships were blamed for spreading the disease, resulting in government-mandated “no-sail” orders and trip cancellations.Royal Caribbean, which warned of a second-quarter loss in the face of a mounting debt…

20 May 2020

Royal Caribbean Warns of Second-quarter Loss

(File photo: Royal Caribbean Cruises)

Royal Caribbean Cruises Ltd forecast a loss in the second quarter on Wednesday as the cruise operator struggles with mounting debt amid trip cancellations due to travel curbs imposed to check the spread of the coronavirus.The company, which posted a bigger-than-expected loss in the first quarter, has faced the brunt of the COVID-19 pandemic as major outbreaks in cruises were blamed for spreading the disease.In the past few months, Royal Caribbean has borrowed more than $5 billion, some by pledging its ships, and now expects to pay between $590 million and $610 million in interests for the rest

13 May 2020

Royal Caribbean Pledges 28 Ships as Collateral in $3.3 bln Bond Offer

(File photo: Royal Caribbean)

Royal Caribbean Cruises on Wednesday launched a $3.3 billion bond offering, pledging 28 of its ships as collateral and forecast heavy losses for the first quarter as the COVID-19 pandemic brings the sector to a virtual standstill.Royal Caribbean, which was forced to suspend its cruises globally and cut about 26% of its U.S. workforce, said the health crisis has dented its first-quarter net income by about $453 million.The cruise operator’s shares, which have sunk over 72% this year…

11 May 2020

Hurtigruten Aims to Resume Operations from Mid-June

(Photo: Hurtigruten)

Expedition cruise operator Hurtigruten extended an operational pause for its fleet of small, custom built ships until June 15, but hopes to gradually restart cruises from mid-June as restrictions brought on by the COVID-19 pandemic begin to ease.Hurtigruten CEO Daniel Skjeldam, said, "There is still a lot of uncertainty in what the next weeks and months will bring. However, we do see international restrictions gradually being lifted. Step by step, the pandemic is being brought under control.

07 May 2020

Norwegian Has Enough Cash to Stay Afloat for 18 Months

(File photo: Norwegian Cruise Line)

Norwegian Cruise Line Holdings Ltd’s $3.5 billion in cash on hand will be enough to bankroll the company for “at least 18 months” without any new revenue due to the coronavirus pandemic that has halted voyages, Chief Executive Frank Del Rio said on Thursday.“That’s enough to cover our cash burn under a zero-revenue environment for at least 18 months, not 12, 18 months,” Del Rio told Reuters in a phone interview.Norwegian’s shares, which have lost almost 80% of their market value this year…

07 May 2020

Princess and Other Cruise Lines Extend Service Suspensions

© Studio Porto Sabbia / Adobe Stock

Carnival Corp’s Princess Cruises said on Wednesday its voyages would remain suspended through the end of summer as reduced flights and travel bans around the globe bring the industry to a virtual standstill.Holland America Line, Carnival’s another unit, said it has canceled all cruises for Alaska, Europe and Canada and New England for the year, as well as its Amsterdam vessel that was scheduled to depart in October to Fort Lauderdale, Florida from Boston.“As we continue to navigate through these unprecedented and challenging times…

06 May 2020

Norwegian Cruise Line Secures $2.2 Bln Funds

(File photo: Norwegian Cruise Line)

Norwegian Cruise Line Holdings Ltd has raised over $2.2 billion through debt and equity offerings, giving the cash-strapped cruise operator much-needed funds to survive extended voyage suspensions due to the COVID-19 pandemic.The company warned on Tuesday that it might not have funds to keep its business running for the next 12 months.

05 May 2020

Norwegian Cruise Line Flags Doubts About Its Ability to Stay Afloat

(Photo: Norwegian Cruise Line)

Norwegian Cruise Line Holdings Ltd, the world’s third-largest cruise operator, raised doubts about its ability to continue operating on Tuesday, the first in the sector to signal it may succumb to the coronavirus crisis.The company’s shares closed down more than 20% as it launched a $1.6 billion offering of shares and bonds in a scramble to raise money, and announced a $400 million investment in a subsidiary from private equity firm L Catterton.“This is an industry that we’ve been pursuing for a long period of time…

20 Apr 2020

Norwegian Cruise Taps Goldman Sachs to Explore Stake Sale

(Photo: Norwegian Cruise Line)

Norwegian Cruise Line Holdings Ltd has hired investment bank Goldman Sachs Group Inc to explore financing options that could include the sale of a stake in the company, people familiar with the matter said on Friday.Norwegian’s attempt to bolster is finances comes as cruise operators have been forced to suspend their operations due to the novel coronavirus outbreak. They have been left out of a $2.3 trillion stimulus package that U.S. lawmakers have adopted to support the economy…

17 Apr 2020

Hapag-Lloyd Cruises Brings its Fleet Home

Photo: Hapag-Lloyd

“Stay at home” is the global message of the moment. The fleet of the Hamburg-based cruise company Hapag-Lloyd Cruises, which would normally be sailing the seven seas, is now heading for the waters of its home port. The expedition ship, the HANSEATIC nature, will be the first to return and is expected to arrive in Hamburg, Germany, on April 20. Its sister ship, the international HANSEATIC inspiration, and the two luxury ships, the EUROPA and the international EUROPA 2, are also now on their way back to Hamburg.

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