Dire financial predictions from Carnival Corp. Is RCI next?

[joelheather]

According to a financial statement just released from Carnival Group.  If ops do not resume soon, It will directly impact its ability to start to repay its loans as of May 2021.  

 

This is very bad folks.  Royal has more outstanding debt then Carnival currently does. It beginning to look very grim folks.  

 

My vote still stays with NCl financial collapse first, by March 2021.

[WeatherFx]

35 minutes ago, joelheather said:

According to a financial statement just released from Carnival Group.  If ops do not resume soon, It will directly impact its ability to start to repay its loans as of May 2021. 

Do you have a link to the financial statement?

[drsel]

I think Norwegian just released its results

[WeatherFx]

5 minutes ago, drsel said:

I think Norwegian just released its results

Norwegian stated in their FORM 8-K on 8/6/20:

The COVID-19 pandemic has had a significant impact on the Company’s financial position and results of operation. If the temporary suspension of sailings is further extended, the Company’s liquidity and financial position would likely continue to be impacted.

 

No surprise there.

[drsel]

https://www.globenewswire.com/news-release/2020/08/06/2074088/0/en/Norwegian-Cruise-Line-Holdings-Reports-Second-Quarter-2020-Financial-Results.html

[firefly333]

May 2021 a long ways away. If cruises arent going by then all lines will be financially impacted.

[atanac]

22 minutes ago, firefly333 said:

May 2021 a long ways away. If cruises arent going by then all lines will be financially impacted.

You'd have to believe a vaccine will be found, delivered worldwide and the pandemic is history for

crusing in or out of the U.S. to resume. May 2021 is a long ways away but remember there has

never been a vaccine to wipe out the flu or HIV and research has been going on for decades.

[Yorkvillain]

 This is very bad folks.  

Noted.

[neverbeenhere]

Infusion of cash-o-la will come out of the woodwork or they may be “reorganizing”. 

[bouhunter]

1 hour ago, firefly333 said:

May 2021 a long ways away. If cruises arent going by then all lines will be financially impacted.

They're "financially impacted" now.....

[firefly333]

6 minutes ago, bouhunter said:

They're "financially impacted" now.....

No argument from me. Just meant about the may 2021 date the op gave. 

 

Of course they are financially impacted now lol. 

[CGTNORMANDIE]

2 hours ago, WeatherFx said:

Norwegian stated in their FORM 8-K on 8/6/20:

The COVID-19 pandemic has had a significant impact on the Company’s financial position and results of operation. If the temporary suspension of sailings is further extended, the Company’s liquidity and financial position would likely continue to be impacted.

 

No surprise there.

You might not have to wait too long for NCL to go under.  It looks like they are already in rough shape.  

[Germancruiser]

And it is not just the cruise lines that are in Dire Straits...!

[time4u2go]

Yep. 

[zekekelso]

Keep in mind the difference between the cruise line and the corporate owner. The corporate owners may end up bankrupt; that just means somebody else can step in to own it. Of course, if cruising doesn’t resume, or has so many restrictions that it is t worth cruising, then we are all screwed. 

[notladjr]

The three major cruise companies, Carnival, Royal, and NCL all have taken steps to attain new investment, take out new lines of credit, and arrange for loan payments to be deffered. All to allow them to remain solvent for up to one year. That one year will be up in April 2021. For that reason I think all three will surivive. My biggest concern is that once the pandemmic is over and the cruise lines ramp back up with so much new debt to service how is that going to effect their operations? Will we see further cutbacks in food quality and offerings? Less crew and therefore less service? Time will tell.

[drsel]

Yes, there will be a lot of cut backs in service and quality of food.

I think even the number of crew and their salaries will be reduced dramatically, possibly by even 40%

Gratuities will go up and the cost of onboard spending will increase

[Chiliburn]

A year at least ,things may recover, these companies won’t exist but the ships will be .

[mek]

This is the primary reason I think people who are booking future cruises right now when that future is so unknown or might not even exist for a long time are crazy.   Who really knows what will happen in the next 12 months,(or possibly longer?)

What happens if ships don't sail, lines either stop operations or go out of business, and then folks have thousands tied up and want their money back?

I think anyone booking future cruises has to realize they just might be kissing their money good by.

[PhillyFan33579]

10 hours ago, notladjr said:

The three major cruise companies, Carnival, Royal, and NCL all have taken steps to attain new investment, take out new lines of credit, and arrange for loan payments to be deffered. All to allow them to remain solvent for up to one year. That one year will be up in April 2021. For that reason I think all three will surivive. My biggest concern is that once the pandemmic is over and the cruise lines ramp back up with so much new debt to service how is that going to effect their operations? Will we see further cutbacks in food quality and offerings? Less crew and therefore less service? Time will tell.

The simple solution is to increase the cruise fare. Of course the big unknown will be how many people will pay higher fares. The longer cruise lines remain grounded, the more likely cruise lines will have to increase fares to survive and start paying off all the debt they have accumulated. I can see cruising no longer being affordable for the majority of people like it has been for a long time. 

[GEORGIEGIRL]

One question. Haven't we all been financially impacted in one way or another? Whether it be due to job loss/furloughs/pay cuts, etc.. or 401K's . So to say that they may be affected is no big deal...

[drsel]

I think It's ok to invest a small amount, say $50 --300 per person to book a future Cruise in 2021.
But only if you are getting a fabulous deal!

Because the ships will still be sailing after this is all over, even if the owners change.

[Charles4515]

I think It's ok to invest a small amount, say $50 --300 per person to book a future Cruise in 2021.

But only if you are getting a fabulous deal!

 

Because the ships will still be sailing after this is all over, even if the owners change.

 

I don’t think it is worth it to book a future cruise but I agree most of the ships will sail again. If the old owners fail the most modern ships will be an opportunity that new owners will take advantage of. It could take a few years though.

 

 

Sent from my iPhone using Tapatalk Pro

[bouhunter]

1 hour ago, PhillyFan33579 said:

. Of course the big unknown will be how many people will pay higher fares. 

Actually the big unknown is how many will pay any fare.  A percentage of the customer base will stay away from fear of the virus, another segment will have been financially impacted personally and not want to spend for a cruise regardless of cost.  Yet another percentage will stay away at least for a while because they don't want to end up on a covid cancelled cruise or a quarantined prison ship.  And some won't cruise because of masks and other restrictions.  They have so much to overcome.  Their customer base is going to be smaller, the avid regular cruisers on these boards dying to get onboard aren't representative of the majority of their customers.

 

Once they do start sailing, it will be interesting to see 6 months later how many ships are sailing and where.  I doubt every ship and itinerary they're selling right now actually sails after they start up.

Edited August 8, 2020 by bouhunter

[lexxfield]

26 minutes ago, bouhunter said:

"........  And some won't cruise because of masks and other restrictions.  ...."

 

 

This sums up why it will be a long time before we cruise again.  When the fun and exciting atmosphere on a ship is replaced by something that is more akin to a hospital setting, very few will spend their travel money on such an experience.