| Carnival Corp plots full fleet return

CARNIVAL Corporation is “working toward having all of our ships back in service by the end of the year,” according to an update overnight from Chief Executive Officer Arnold Donald.

The company reported a US$2.2 billion net loss for the three months to 30 Nov 2020 in its quarterly financial results.

“2020 has proven to be a true testament to the resilience of our company,” Donald said.

“With the aggressive actions we have taken, managing the balance sheet and reducing capacity, we are well positioned to capitalise on pent up demand and emerge a leaner, more efficient company, reinforcing our industry leading position,” he added.

Carnival Corporation currently has 30 vessels in American waters, and they are working toward permission to set sail this year, but timing of the proposed “test cruises” to prove the effectiveness of coronavirus protocols was still up in the air due to ongoing work with the Centers for Disease Control & Prevention (CDC).

Donald said Carnival was implementing the CDC’s Framework for Conditional Sailing, but was also awaiting additional technical guidelines for further phases of the resumption.

“While the framework represents an important step in our return to service, many uncertainties remain as to the specifics, timing and cost of implementing the requirements,” he said

“The company continues to work closely with governments and health authorities in other parts of the world to ensure that its health and safety protocols will also comply with the requirements of each location.”

In other jurisdictions such as Europe, operations were already underway on a limited basis for both the AIDA and Costa brands.

Carnival also announced it now expects to dispose of a total of 19 ships, one more than previously advised, with 15 of those already having left the fleet.

The divestment means Carnival’s total capacity is expected to be reduced by 13%.

Donald said the company was seeing consistently strong booking trends, with advance reservations for the first half of 2022 currently ahead of comparative 2019 levels.

He also noted Carnival was well-positioned to tap into demand, with its multi-brand offering facilitating a staggered return, and the ability to operate domestic or close-to-home voyages supported by local homeporting in each country.