Carnival PLC Carnival Corp Taking Steps to Manage Pause in Operations
May 14 2020 - 08:09AM
UK Regulatory
TIDMCCL
Carnival Corporation Announces Additional Steps to Further Strengthen Ability
to Manage through Extended Pause in Guest Operations
MIAMI, May 14, 2020 /PRNewswire/ -- Carnival Corporation & plc (NYSE/LSE: CCL;
NYSE: CUK), the world's largest leisure travel company and cruise operator,
announced today a number of additional actions it is taking to further
strengthen its liquidity position in the event of an extended pause in guest
operations due to COVID-19.
Carnival Corporation was the first to pause the guest cruise operations of some
of its brands in the face of the impact of the COVID-19 global pandemic,
followed on March 13th by the rest of its brands and the other cruise
companies. That action was taken before stay-at-home or shelter-in-place was
implemented in the U.S. and before U.S. hotels, airlines, restaurants and other
forms of public gathering or transportation began shutting down or limiting
service.
Last month the company completed a successful financing effort with a heavily
oversubscribed offering of senior secured notes, senior convertible notes and
common stock, netting $6.4 billion of additional liquidity. To further
strengthen liquidity, Carnival Corporation and its brands are announcing a
combination of layoffs, furloughs, reduced work weeks and salary reductions
across the company, including senior management. These moves will contribute
hundreds of millions of dollars in cash conservation on an annualized basis.
Since the company paused its guest cruise operations in early March, workforce
changes were largely placed on hold, even in the face of no meaningful revenue,
to forestall the financial impact on its employees while still meeting its
fiscal responsibilities - deferring employee actions beyond that of many others
in similar situations during this pandemic. The company continues to support
its travel agent partners by paying commissions on canceled cruises and on
future cruise credits when guests rebook.
In addition to its continuing efforts to repatriate the many thousands of crew
members still on its ships to their home countries, the company is also working
closely with governments, regulatory agencies, health and infectious disease
care experts around the globe to develop the best practice public health
protocols to address the threat of COVID-19 for when guest operations resume.
Repatriation efforts include chartered flights as well as rerouting its ships
to crew home ports where those ships would not have otherwise sailed. The
company is also working closely with its many destination partners as it
continues to evaluate the best options and safety protocols for return to
service.
"Taking these extremely difficult employee actions involving our highly
dedicated workforce is a very tough thing to do. Unfortunately, it's necessary,
given the current low level of guest operations and to further endure this
pause," said Carnival Corporation & plc President & CEO Arnold Donald. "We care
deeply about all our employees and understanding the impact this is having on
so many strengthens our resolve to do everything we can to return to operations
when the time is right. We look forward to the day when many of those impacted
are returning to work with us and we look forward to the day, when appropriate,
that once again our ships and crew are delighting millions of people at sea and
we can be there for the many nations and millions of people who depend on the
cruise industry for their livelihood.
Added Donald, "We also want to thank our guests for their many thoughtful notes
and overall outpouring of support. It is clear there is tremendous anticipation
for a return to cruising. It's also encouraging to note that the majority of
guests affected by our schedule changes want to sail with us at a later date,
with fewer than 38 percent requesting refunds to date. Our booking trends for
the first half of 2021, which remain within historical ranges, demonstrate the
resilience of our brands and the strength of our loyal recurring customer base,
of which 66% are repeat cruisers. In addition, we plan to stagger fleet
reentry to optimize demand and operating performance over time."
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.
About Carnival Corporation & plc
Carnival Corporation & plc is the world's largest leisure travel company with a
portfolio of nine of the world's leading cruise lines. With operations in North
America, Australia, Europe and Asia, its portfolio features Carnival Cruise
Line, Princess Cruises, Holland America Line, Seabourn, P&O Cruises
(Australia), Costa Cruises, AIDA Cruises, P&O Cruises (UK) and Cunard.
Additional information can be found on www.carnival.com, www.princess.com,
www.hollandamerica.com, www.seabourn.com, www.pocruises.com.au,
www.costacruise.com, www.aida.de, www.pocruises.com and www.cunard.com.
CONTACT: Roger Frizzell, Carnival Corporation, rfrizzell@carnival.com, (305)
406-7862; Mike Flanagan, LDWW, mike@ldwwgroup.com, (727) 452-4538
END
(END) Dow Jones Newswires
May 14, 2020 08:09 ET (12:09 GMT)
Carnival (LSE:CCL)
Historical Stock Chart
From Feb 2024 to Mar 2024
Carnival (LSE:CCL)
Historical Stock Chart
From Mar 2023 to Mar 2024