Norwegian Cruise Line Holdings has reported a quarterly loss of $715 million for the three months to June and a half-year loss of $2.65 billion.
But Norwegian, the world’s third-largest cruise giant, reported $1.2 billion in advance ticket sales and said its liquidity stood at $2.8 billion at the end of June.
Revenue in the three months to June was barely $17 million compared with $1.7 billion in the same quarter of 2019.
NCL Holdings raised a further $1.5 billion in capital in July through a combination of equity and $1.2 billion in loans.
Frank Del Rio, Norwegian Cruise Line Holdings president and chief executive, said the action to bolster liquidity “positions us to withstand a scenario of prolonged voyage suspensions”.
The company has suspended cruise operations to the end of October, but Del Rio said: “We made significant progress in our Roadmap to Relaunch with the formation of our Healthy Sail Panel, comprised of globally recognised public health experts.”
The panel will advise “on the development of a science-backed plan for a safe and healthy return to cruising”.
Del Rio reported the company’s cumulative bookings and pricing for 2021 remains “within historical ranges, including bookings made with future cruise credits”.
These credits for cancelled cruises “typically offer 125% of the cruise fare in lieu of cash refunds” and are valid for sailings through to the end of 2022.
However, about 60% of customers with cancelled cruises up to August 3 had sought cash refunds, the company reported.
The $1.2 billion in advanced ticket sales includes about $0.8 billion in future cruise credits.
NCL Holdings has introduced a new final-payment schedule for 2020 voyages, cutting the final payment requirement to 60 days prior to embarkation versus the standard 120 days.
The group comprises Norwegian cruise Line, Oceania Cruises and Regent Seven Seas Cruises.
It said the Healthy Sail Panel, set up in collaboration with Royal Caribbean Group and announced in July, would develop recommendations for the safe resumption of cruise operations and make these freely available to any company or sector.
The results statement gave no guidance on when sailings would resume, and noted: “If the temporary suspension of sailings is further extended, the company’s liquidity and financial position would continue to be impacted.”
It warned the continuing Covid-19 pandemic would further delay delivery of new ships, noting: “The impacts of Covid-19 on shipyards where the company’s ships are under construction, or will be constructed, could result in additional delays in ship deliveries which may be prolonged.”
This is a community-moderated forum.
All post are the individual views of the respective commenter and are not the expressed views of Travel Weekly.
By posting your comments you agree to accept our Terms & Conditions.