The cruise companies are stuck in the crisis. Industry giant Carnival is not recorded in the second quarter, a loss of 4.4 billion dollars and knows when he can get the plant running again. The shares have halved in value and remain weak.
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The “Carnival Miracle” is located in California at anchor.
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If the Corona-crisis hits hard an industry, then it is the cruise industry. Even if the potential customers in the aircraft and in the port cities should fly, so is a long time not sure, whether you are staying for days or even weeks to hundreds or Thousands in the confined spaces of the ships on the high seas and the risk of Infection want to expose. Without vaccines in the past, quite a lucrative business seems to be being called into question.
Massive losses to the substance
The example of the American company, Carnival Corporation, it is clear what that means. The company has presented on Thursday the results for the second quarter of the current year, and in this context, a record loss of 4.4 billion $ in sales of just $ 700 million announced. It burned a month of 650 million $ and had to write off $ 2 billion on older ships, with which it is in the future, obviously, nothing can start. After all, the company is still liquid, after lines of credit, and in April, two bonds for a total of 6 billion $ to spend had had to take, but with high Coupons.
Shares under water
Indexed Share Price Development
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The cruise business in the world collapsed, after several ships of the line were Coronavirus-Hotspots. A few of them were in the possession of Carnival’s Princess Cruises. Some of the persons on Board have died, hundreds of crew members and employees had to be for a longer period of time in quarantine. The company hopes to be able to the operating step of the way, to resume, has come to terms with the reduction of the total capacity and does not exclude, to hurt, in the extreme case, the conditions of various loans.
The business has received a significant damper
Cruise lines usually get reservations six months to a year in advance. Since the beginning of the crisis in Asia, they had to cancel thousands of Tickets to customers, refund or rebook. In the case of Carnival of the cancellations affected guests demanded a full refund, while the Rest of the rebook was ready. New bookings that had been made in may for cruises in the year 2021, would be located well below the level of the previous year, but signs of improvement shown, it was said. That sounds good, but it must not obscure the fact that the business has received a significant damper.
While Carnival can not foresee when the operation will resume, it has exposed the competitor Norwegian Cruise Line cruises at least until the end of September. This is a long time, due to running costs and lack of revenue to the financial substance. Who sets under these conditions the shares of such companies, must be arg confident.
The Carnival convertible bond attracts
Price development in percent
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