Carnival Corporation & plc has revealed additional steps it plans to take to continue to strengthen its liquidity position in the event that cruise operations are further suspended due to COVID-19.
The cruise giant originally suspended operations back in March and the Centers for Disease Control and Prevention (CDC) has put in place a no-sail order effective through July 24. As of last week, Carnival subsidiary Carnival Cruise Line plans to resume operations on August 1 with only eight ships sailing from Miami, Port Canaveral and Galveston.
After securing $6.4 billion of additional liquidity last month, Carnival Corporation and its brands have just announced a combination of layoffs, furloughs, reduced workweeks and salary reductions across the company, which includes senior management.
The moves will contribute hundreds of millions of dollars in cash conservation on an annualized basis, Carnival said, adding that it continues to support its travel agent partners by paying commissions on canceled cruises and on future cruise credits when guests rebook.
"Taking these extremely difficult employee actions involving our highly dedicated workforce is a very tough thing to do. Unfortunately, it's necessary, given the current low level of guest operations and to further endure this pause," said Carnival Corporation & plc President & CEO Arnold Donald, in a statement accompanying Thursday's announcement.
"We care deeply about all our employees and understanding the impact this is having on so many strengthens our resolve to do everything we can to return to operations when the time is right. We look forward to the day when many of those impacted are returning to work with us and we look forward to the day, when appropriate, that once again our ships and crew are delighting millions of people at sea and we can be there for the many nations and millions of people who depend on the cruise industry for their livelihood."
Donald also thanked travelers for their encouragement and desire to return to the sea.
"We also want to thank our guests for their many thoughtful notes and overall outpouring of support. It is clear there is tremendous anticipation for a return to cruising. It's also encouraging to note that the majority of guests affected by our schedule changes want to sail with us at a later date, with fewer than 38 percent requesting refunds to date," he added. "Our booking trends for the first half of 2021, which remain within historical ranges, demonstrate the resilience of our brands and the strength of our loyal recurring customer base, of which 66 percent are repeat cruisers. In addition, we plan to stagger fleet reentry to optimize demand and operating performance over time."
As Donald alluded to, Carnival bookings have dramatically increased in the days since the company revealed its scheduled return to the seas.
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