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A cruise ship from Carnival.
MARK RALSTON / AFP / Getty Images
Following the postponement of the launch of German cruises earlier this month, Carnival plans to restore sailings from that country and Italy in early September.
The exhibition was a setback for Carnival (ticker: CCL), the largest cruise operator in the world. Together with his peers, the Miami company stopped passenger sailing in mid-March due to the pandemic.
The Germany-based AIDA Cruises, one of nine brands in Carnival’s portfolio, had originally planned to launch passenger cruises in early August.
But it did not secure the necessary approvals from Italy, where the ships are registered, which triggered the delay. A spokesman for Carnival said Friday that those approvals are now in hand.
AIDA plans to repair sails on September 6, initially from the port of Kiel. Cruises aboard the AIDAperla will begin on September 12 from Hamburg.
Closing at $ 14.65 on Friday, Carnival shares were up about 6% this month, roughly a percentage point ahead of the S&P 500, although the year has been down 70% so far this year.
Meanwhile, another Carnival brand, Costa Cruises, plans to slowly resume operations from Italian ports on September 6th. Costa, based in Italy, said in a news release that the Italian government had “approved the return of cruises and the new health protocol” for those ships.
The Costa cruises are only reserved for Italian guests, the company said.
US ports remain closed due to a no-sail order by the Centers for Disease Control and Prevention in effect through September 30. However, many analysts covering the cruise sector do not expect sails from US ports to be late. restore this year or even early 2021.
A major concern for Carnival and its peers is liquidity, as most of its passenger cruises remain on hold. The company announced on August 18 that it had helped its liquidity with a private offering of $ 900 million in secured notes.
That debt, which matures in 2027, has a coupon of 9,875%. It is classified as second secure notes for seniors.
Brandt Montour of JP Morgan recently estimated that Carnival burns about $ 450 million a month.
The company announced on August 14 that as of July 31, its cash and cash equivalents totaled $ 7.9 billion.
Earlier in August, the cruise operator announced that it had closed a share offering whose proceeds were used to pay off part of its debt.
Write to Lawrence C. Strauss at [email protected]
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