Royal Caribbean, Norwegian Cruise Line Extend Voyage Suspensions to July 31 –

Cruises ships are seen docked at Miami port because the tourism trade is affected by the unfold of the coronavirus illness (COVID-19), in Miami, Florida, U.S., March 18, 2020. REUTERS/Carlos Barria

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By Nivedita Balu Could 20 (Reuters) – Royal Caribbean Cruises Ltd and Norwegian Cruise Line Holdings Ltd on Wednesday prolonged the suspension of voyages by one other month till July 31 amid crusing curbs imposed to examine the unfold of the coronavirus.

The cruise trade has confronted the brunt of the well being disaster as main outbreaks in ships have been blamed for spreading the illness, leading to government-mandated “no-sail” orders and journey cancellations.

Royal Caribbean, which warned of a second-quarter loss within the face of a mounting debt, mentioned it must pay between $590 million and $610 million in curiosity for the remainder of the yr on borrowings to the tune of greater than $5 billion.

The corporate, previously few months, has needed to borrow cash by pledging some its ships. Whereas its China operations would proceed, the corporate mentioned reserving volumes for the remainder of the yr have been slowly enhancing, pushed by demand for cruises later this yr and in 2021.

“Our present reserving tendencies point out that there’s demand for cruising,” Chief Monetary Officer Jason Liberty informed analysts.

Rivals Carnival Corp and Norwegian Cruise Line have additionally signaled an identical return in demand.

Royal Caribbean mentioned web loss attributable to the corporate was $1.44 billion, or $6.91 per share, within the first quarter ended March 31.

Excluding one-time gadgets, it misplaced $1.48 per share, way more than Wall Avenue expectations of 63 cents loss, in accordance Refinitiv knowledge.

Shares of the cruise operator have been down 4% at $40.7 in midday buying and selling. (Reporting by Nivedita Balu in Bengaluru; Enhancing by Bernard Orr, Anil D’Silva and Arun Koyyur)

(c) Copyright Thomson Reuters 2019.

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