Carnival's struggle to survive the coronavirus as outbreak wipes out the cruise industry

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Cruise lines have proven resilient in the face of setbacks like norovirus, measles, collisions and more. But can they recover from coronavirus? Watch the full video here:

— are all down more than 80% so far this year, putting the valuations of the big three at multiyear lows.

Over the years, the company has faced every disaster you can envision, from viral outbreaks, to colliding ships, flooding, and fires. But perhaps its two biggest scars are the sinking of the Costa Concordia off the Italian coast in 2012, killing 32 passengers, and an engine-room fire that left the Carnival Triumph without power for days, causing toilets to backup and human waste to overflow into rooms and hallways. That so-called "poop cruise" gripped global media.

Until the outbreak of COVID-19, sales for Carnival had been strong, rising every year since 2015, and up more than 10% from fiscal year 2018 to 2019. That's nearly double the revenue of Royal Caribbean and more than three times Norwegian's sales in fiscal year 2019. Net profit also dwarfs the competition, though the company hasCarnival's long-term viability ahead of the outbreak was also promising.

Getting credit investors on board comes at great cost to the company. The bulk of this new financing is from bonds"The cost of financing was particularly onerous, given this is an investment-grade entity with a substantial amount of collateral coverage," said John McClain, a portfolio manager at Diamond Hill Capital. "Its collateral coverage is 86 vessels, plus intellectual property, with a net book value north of $28 billion.

An image of Carnival Splendor cruise ship at the Overseas Passenger Terminal in Circular Quay on March 22, 2020 in Sydney, Australia."Even under the best case scenario where there's containment of this virus, it could literally take up to a year for things to get back to any semblance of normalcy," said Tuna Amobi, senior media analyst at CFRA Research.

 

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Since international flights are limited these days, a lot of people are getting stuck in foreign countries. Why don’t cruise liners try to explore these business opportunities to shuffle these people back home You can have people quarantined for 2 weeks before boarding.

I had rebooked for 21' but called and got my money back before the bankruptcy filings start. Covid19 is out of control now.

Floating coffins.

not the first time they imploded more than 60%...strong buy

germ factory !

Why can’t they get their quarantined crews off the ships ?

Didn't Trump & Co just give them a huge amount in bailout funds?

Thry wont come bak until vaccine. Anyone that goes on cruise before. Is risking there lives no matter healthy protocols. Don’t trust cruise lines

I personally don’t like cruises but I do think they come back it’s a vaccine play imo. Only issue is the cash burn and when they do get back prices will be so cheap to lure people back. Feels like a long term hold I mean there are better places to put your money to work imo

jimcramer loves talking about cruises. He wants to take davidfaber on one.... I only hear it twice a week..i don't think David is interested............😛

You couldn't pay me to get on one of those floating Petri dishes even before Covid hit

Total waste if fuel. Shut this shit down.

I wouldn't 'cruise' before Covid-19 due to norovirus concerns. Never going to now that is 💯% certain

One word: bailout

they have not proven resilient, their balance sheets have been bolstered by the fed, they are shut down and have costs to cover with out any real revenue

Cruise lines will recover, as will U.S. and international economies.

There must be quite a bit of metal scrap value in those things?

Those ships won’t be sailing anytime this year

You think American would allow there to be no more cruises! Everyone is waiting for covid to be over so they can do exactly that! Disney cruises carnival cruises royal cruises Norwegian cruises all the cruises!

They'll bounce back, but there could be consolidations.

Is norovirus fatal? Not really. Next question.

Nope

stoolpresidente says they can.

Cruise ships are floating Petri dishes.

Мы выживем

Who cares? They’re now nothing more than death traps for trumpers. Let them enjoy the experience of getting sick and being quarantined.

As someone who's been on 5 cruises before - and had norovirus in the back of my mind while being a passenger and yet still cruises - I DON'T think I can get this out of my mind. I think this will DEFINITELY change my mind about going on another one again ... which is so sad ☹️

Floating petre dishes... take your life in your hands now.

I was already never going on a cruise. Not a fan of boats, and being crowded with the masses. Now I’ll never go on one, no matter what.

Am ready to cruise!!!!

Here's hoping all travelers are wise and careful. Not everyone on a ship with them will be.

It’s the end for a few years.... we can’t lose more Americans to covid

Especially with bailouts.

Have you ever seen the people that take cruises? We can do without these people in our society.

Have to be insane to ever get on a cruise ship

Cruise Ships are floating plagues

Resilient = Bailout

What about the motorcoach industry, that hauls more Americans than Cruise ships. Used for military moves and is part of the emergency action plans in times of crisis. No one ever mentions them. Most are shut down with thousands out of work.

It a symbol of a worry-free time. Hope the time will come back.

Of course it will. Just as arenas will be packed again to watch games and concerts... bars, clubs, conferences, Disneyland, etc etc etc... Stop the panic.

Melt those polluting, Petri dish ships into bicycles for children.

No thanks. Sink them all.

Will you cruise again?

I hope to fuck not

why the fuck shoud the us gov help this fuckers if they are all registred in panama and pay thier taxes?

Cruise ships are poluting our ocean and killing marine lifes.

Need to find postal service instead of cruise companies

En esta temporada estos cruceros pueden esperar, pero las VIDAS NO. LA VIDA ES PRIMERO el dinero después.

Who cares?

They need to go ask for help where their ships are registered GTFOH

Of course they’re resilient they’re getting all those bailout money

I think those giant ships are a scourge on the ocean and any port they dock in. They're always spreading diseases, crashing into docks, randomly sinking, or just allowing bad singers to sing. Let's get rid of them.

They knew this virus was going on and still booked many cruises....i hate to say it but they deserve what they get.

Floating Chinese virus petri dish.

The Chinese may bail out the industry by buying idled ships for pennies on the dollar and building an Asian cruising juggernaut

Answer they will recover, but a long wait, new regulations likely to cover who is responsible in these types of occurrences where passengers are out of any country’s jurisdiction

I will STOP CRUISING ... That's my reality ...

The Saudis think so. They made sizable investment in Carnival cruise line

your got to be some sort of prat to be in lock down thinking will take a cruise when we can go back out

They should seek bailouts from the Countries their vessels are registered in.

Sad news

I sincerely hope not

CCL stock is up today.. explain that..

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