Carnival's CEO said the business has enough money to make it through the rest of 2020 without generating any income (CCL)
The business has actually halted brand-new cruises because March.
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Carnival Corp. has sufficient cash on hand to survive a scenario in which it makes no revenue for the rest of this year, Arnold Donald, the business's CEO, stated on CNBC Tuesday.
" We're not stating that's going to happen, however we wish to be prepared for the worst case," he said.
Carnival has raised over $6 billion in debt and equity this year after drawing $3 billion from its line of credit, and the company is trying to find extra sources of funding after being left out of the United States government's $2 trillion stimulus bundle, Donald told CNBC. The company has actually likewise cut the pay of executives and some ship-based workers
" There's opportunities in Germany and the UK and Italy and other places for us to protect extra liquidity," Donald said.
The relocations have come as the unique coronavirus has actually shut down the cruise market after over 1,000 travelers on ships like the Diamond Princess, Ruby Princess, and Costa Luminosa tested favorable for COVID-19 Last week, the Centers for Illness Control and Avoidance released an order that might prohibit cruises in US-controlled waters up until July.
While Carnival lost $781 million in between December and February, compared to the $336 million profit it made during those exact same months a year previously, a little under half of the customers who reached out to the company concerning canceled cruises during the first 2 weeks of March chose to get credits for future cruises instead of money refunds, recommending Carnival's consumer base will not abandon the business when it is enabled to resume cruising.
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