Published on Friday, June 19, 2020

Carnival selling off ships as it posts record quarterly loss

After reporting its largest ever quarterly loss, Carnival Corp said it was advancing the sale of six of its ships.


The ships were already scheduled to be sold as the company refreshes its fleets with brand new vessels but has now brought this forward.


It will offload the ships in the next 90 days, and new arrivals from shipyards will likely be delayed due to the pandemic.


It is taking a $2 billion hit on the difference in the sale price of the ships from their previously booked value.


Carnival posted a $4.4 billion loss in the second quarter and has no idea when cruising will return.


"The pause in guest operations is continuing to have material negative impacts on all aspects of the company's business," Carnival said.


It expects to resume cruises in a phased manner but doesn't know when that will be.


The current CDC 'No Sail' cruise ship ban remains in effect for another month.


The company hinted it could default on loan repayments.


"The longer the pause in guest operations continues the greater the impact on the company's liquidity and financial position."


 

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