Carnival Corp. is the largest cruise company in the world. However, even for the largest cruise company, the coronavirus is a huge problem. It is not a secret that pandemic has roiled the travel industry across the globe. However, the pandemic was even more painful for cruise companies.
Unfortunately, several passengers died as cruise ships became outbreak sites. Moreover, ports across the world have denied vessels entry, and some of the ships spent days finding a port willing to accept their passengers and crews.
Moreover, travelers canceled trips and most companies in the world suspended operations. Carnival Corp. was at the epicenter of several high-profile onboard outbreaks. For example, cruise ship Diamond Princess spent some time at a Japanese port in one of the first major outbreaks outside of China.
Furthermore, last week the Center for Disease Control and Prevention decided to extend the “No Sail Order” originally issued on March 14 for up to 100 days. Carnival Corp. voluntarily extended its pause of operation.
Carnival and plans for 2021
As mentioned above, the cruise industry is trying to stay afloat in spite of issues. Carnival’s CEO Arnold Donald stated that customers are already booking for 2021. Also, Donald said the cruise industry will get back along with the rest of the travel industry.
The world’s largest cruise company is scrambling for cash. This month company said it planned to raise about $6 billion by issuing a mix of debt and equity.
Nevertheless, it won’t be easy for the cruise company to find additional financing due to one problem. Credit rating agencies S&P and Moodys’ continue to review the company for a downgrade. Credit rating agencies may downgrade the status of Carnival Corp. to junk.
It is worth mentioning that, shares of Carnival gained more than 8% on Tuesday. However, as of April 14, shares of the largest cruise company fell more than 75% since January 1.