Cruise credits accounted for two thirds of NCLH advance ticket sales early August
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 07 August 2020 07 August 2020
Norwegian Cruise Line Holdings Ltd (NCLH), the world’s third largest cruise shipping group, said that cruise credits accounted for two thirds of its advance ticket sales as per early august.
All three brands have instituted programmes for guests on cancelled sailings as a result of the company’s voyage suspension which include offering value-add future cruise credits typically for 125% of the cruise fare paid in lieu of providing cash refunds, the company said in a statement.
These are valid for any sailing through 31 December 2022 and as of 3 August approximately 60% of the guests who have had their voyages cancelled have requested cash refunds.
At the end of June, NCLH had $1.2 billion of advanced ticket sales, including the long-term portion, which includes approximately $0.8 billion of future cruise credits. “The Company continues to take future bookings and receive new customer deposits and final payments on these bookings,” NCLH said.
“To provide additional flexibility to its guests, the Company has also introduced a new final payment schedule for all 2020 voyages which requires final payment 60 days prior to embarkation versus the standard 120 days,” it concluded.
NCLH: deep second quarter loss, sharp rise in interest expenses, unable to provide guidance for rest of 2020
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 07 August 2020 07 August 2020
Norwegian Cruise Line Holdings Ltd (NCLH), the world’s third largest listed cruise ship operator, has reported a deep loss for the second quarter due to the Covid-19 outbreak and said it is unable to give a guidance regarding its result for the rest of the year.
While revenues decreased, interest expenses almost doubled due to rising debt.
Group net loss amounted to $715.2 million compared to a profit of $240.2 million profit in the prior year. Revenue decreased to $16.9 million compared to $1.7 billion in 2019 due to the complete suspension of voyages in the quarter.
Interest expense, net was $114.5 million in 2020 compared to $66.0 million in 2019. The change in interest expense reflects additional debt outstanding, partially offset by lower LIBOR rates. Included in 2020 were losses on extinguishment of debt and debt modification costs of $21.2 million compared to $1.2 million in 2019.
Total cruise operating expense decreased 68.5% in 2020 compared to 2019. “In 2020, our cruise operating expenses were primarily related to the continued payment of protected commissions as additional sailings were cancelled, crew costs, including salaries, food and repatriation costs, and fuel,” NCLH said in a statement.
“As a consequence of Covid-19, while the Company cannot estimate the impact on its business, financial condition or near- or longer-term financial or operational results with certainty, it expects to report a net loss on both a U.S. GAAP and adjusted basis for the third quarter ending September 30, 2020 and the year ending December 31, 2020,” the company said.
P&O Cruises expects delivery of Iona soon, second ship December 2022
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- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 04 August 2020 04 August 2020
P&O Cruises, the UK focused contemporary market unit on Carnival Corporation & Plc group, said it expects to take delivery of Iona in a few weeks’ time and the second, as yet unnamed sister ships, in December 2022.
“P&O Cruises has announced that it plans to take delivery of Iona “before the autumn” and that following discussions with the Meyer Werft shipyard in Papenburg Germany, Iona’s as yet unnamed sister ship will be delivered in December 2022,” the company said in a statement.
The second ship was originally du to enter service in May 2022 and Iona early in this summer.
“Whilst our operations as currently paused, we are delighted that we have more clarity on the arrival of these two new ships.
The final outfitting of Iona is almost complete and is looking stunning and we will take delivery of her before the autumn. We also now know that her sister ship will join the fleet at the end of 2022, said P&O Cruises president, Paul Ludlow, in the statement.
Itineraries for the second ship will go on sale in Spring 2021, P&O Cruises added.
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