The coronavirus has been devastating for the cruise industry, which had expected to welcome 30 million passengers worldwide in 2020. Instead, Carnival and others halted sailings in
Carnival resumed a limited amount of cruising in
Carnival’s Costa brand, which operates in
The company is confident customers will return as it slowly ramps up business. As of
But limiting capacity on ships and adding new safety measures will cut into profits. The company said it expects to report a net loss its 2021 fiscal year, which ends in November.
In a preliminary earnings report issued Monday, Carnival said it lost
Carnival is funding operations with a mix of loans, equity offerings and other financial transactions. The company said it ended its 2020 fiscal year with
To raise cash and bring its fleet in line with anticipated demand, Carnival has accelerated the removal of less efficient ships. The company said it sold or recycled 15 ships in its 2020 fiscal year and expects to sell or scrap four more in the coming months. Prior to the coronavirus outbreak, the company had planned to dispose of those ships after several years.
Carnival is also adding fewer ships than planned to its fleet. The company recently took delivery of two new ships and expects to receive one more in 2021. Five ships were originally scheduled for delivery in 2021.
Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission., source