Carnival to ditch 19 ships, as company posts $2.8 billion quarterly loss

Carnival to ditch 19 ships, as company posts $2.8 billion quarterly loss

Carnival Corporation has added another ship to the pile of vessels that it will offload in order to stay afloat beyond the COVID-19 pandemic.

Having announced in September that it would ditch 18 vessels, the company now expects to dispose of 19 ships, 15 of which have already left the fleet.

In total, the 19 ships represent approximately 13 per cent of Carnival’s pre-pause capacity and three per cent of operating income in 2019.

Carnival said the sale of “less-efficient” ships will result in future operating expense efficiencies of approximately two per cent per available lower berth day (ALBD) and a reduction in fuel consumption of approximately one per cent per ALBD.

The company recently took delivery of two ships and expects only one more ship to be delivered in the 2021 fiscal year, compared to five vessels that were originally scheduled for delivery.

Based on the actions taken to date and the scheduled newbuild deliveries through 2022, Carnival said its fleet will be more efficient, with a roughly 14 per cent larger average berth size per ship and an average age of 12 years in 2022 versus 13 years, in each case as compared to 2019.

The company expects future capacity to be moderated by the phased re-entry of its ships, the removal of capacity from its fleet and delays in new ship deliveries.

Carnival’s fleet update came as part of its performance reveal for the final quarter of 2020, with the group posting a US$2.2 billion ($2.8 billion) net loss during the three-month period.

President and CEO Arnold Donald said 2020 proved to be “a true testament” to the company’s resilience.

“We took aggressive actions to implement and optimise a complete pause in our guest cruise operations across all brands globally, and developed protocols to begin our staggered resumption, first in Italy for our Costa brand, then followed by Germany for our AIDA brand,” he explained.

“We are now working diligently towards resuming operations in Asia, Australia, the UK, and the US over the course of 2021.

“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 to emerge a leaner, more efficient company, reinforcing our industry-leading position.”

Earlier this month, Carnival Cruise Line announced its latest round of sailings from Sydney, featuring 56 cruises on offer from July 2022 through to June 2023.

Carnival Splendor will be making over 130 port calls to 17 destinations across Australia, New Zealand, New Caledonia, Vanuatu, and Fiji, including calls to Queensland, Tasmania and Victoria.

Carnival Cruise Line’s vice president and general manager for Australia, Jennifer Vandekreeke, said the cruise line’s newest and largest ship homeported year-round in Australia, will offer more opportunities to explore the country by sea than ever before.

“We have refined our sailing schedule to provide more visits to the stunning Australian destinations our guests love, with twice as many visits to the Great Barrier Reef and Tasmania, and 25 per cent more cruises to Moreton Island,” she said.

“We have also increased our New Zealand trips by 50 per cent. Guests sailing from Sydney on Carnival will have more options than ever to discover our beautiful country.”


Featured image source: Costa Cruises

Latest News

  • Aviation
  • Products

Luxury fashion house Missoni adds amenity kit to Delta One experience

Italian luxury fashion house Missoni will soon be part of the Delta One experience with a new customer amenity kit. Missoni – a brand well known for its creative use of colors and patterns – will elevate Delta One with the new amenity kit and top-of-the-line details woven into key touchpoints throughout the Delta One […]

  • Cruise

Viking Cruises special 8-day cruise rate

Viking cruises is providing a special offer on its 8-day Rhine Getaway itinerary for November 2024 departures with a strictly limited basis. The cruise takes guests out to discover the charm of old-world Europe as they sail through Netherlands, Germany, France, and Switzerland. The itinerary includes visits the turreted fortresses, grand cathedrals, and medieval towns […]

  • Cruise

Variety Cruises launches “Sell Three, Sail Free in Tahiti” promotion for travel advisors

The family-run, small-ship cruising company, Variety Cruises, has introduced an incentive for travel advisors booking holidays on the company’s Tahiti and French Polynesia cruises. To win a free cruise for two people, the promotion requires advisors to sell three cabins on Variety itineraries in Tahiti booked by 15 September, 2024 and through to 30 April, […]

  • Cruise

Viking is gold sponsor of 2024 Saxo Scandinavian Film Festival, presented by Palace Cinemas via Val Morgan Cinema

Viking has announced it will be a gold sponsor of the 2024 Saxo Scandinavian Film Festival presented by Palace Cinemas via Val Morgan Cinema. The festival, now in its 10th year, showcases the best Nordic contemporary cinema from international film festivals including Göteborg, Cannes and Berlin. The sponsorship provides Viking with the opportunity to connect […]

  • Hotels

The Dorchester rooms and suites

The Dorchester has unveiled additional rooms and suites with a new butler program to enhance guest experience, marking another milestone in its renovation. The portfolio of the world’s foremost luxury hotels and residences, Dorchester Collection, has refurbished room interiors to continue its commitment to reinvent tradition. The Dorchester’s interiors, re-envisioned by interior design firm Pierre-Yves […]

  • Events

Bastille Festival 2024

Residents and travellers can immerse themselves in the vibrant spirit of France as Bastille Festival Sydney returns with a jam-packed program to ignite the Paris Olympic spirit. The annual four-day celebration brings the spirit of France to the heart of Sydney in honour of French Bastille Day. It commemorates two significant events in French history: […]

  • Aviation

Air Astana donates upcycled aircraft furniture to Almaty Airport

The Air Astana ‘Upcycling for the Future’ project involves the creative recycling of used aircraft parts, with furniture having been previously exhibited at various locations across Almaty since 2022.   The aim of the Air Astana project is to promote sustainability and reduce environmental impact. Air Astana Group is the largest airline group in Central […]

  • Conferences
  • Travel Agents

New Zealand’s biggest business event marks Matariki

Matariki, the Māori New Year has been celebrated at a spectacular event for MEETINGS 2024 buyers at Rotorua Airport last night (Wednesday, 19 June). RotoruaNZ Business Events and Coast Group presented a special dinner with supporting partners Rotorua Airport, Terrace Catering, Event Impressions and The Production Agency. The evening featured a stunning 12-minute light and […]

  • Tour Operators

Albatross Tours’ feeling Festive as it guarantees remaining places for Christmas 2024 tours

European tour specialists, Albatross Tours, has guaranteed every tour for Christmas 2024 is a goer. “The Albatross festive program has established itself as a real favourite for Australian travellers. We have a fabulous choice of Christmas market locations – Berlin, Dresden, Prague and Ljubljana are just a few,” managing director Shelley Poten said. The all-inclusive […]