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Carnival secures US$10bn refinancing as it swings to US$4bn quarterly loss

The cruise operator said the cash will be enough to carry on for another full year

Carnival Corporation - Carnival secures US$10bn refinancing as it swings to US$4bn quarterly loss

Carnival Corporation & plc (LON:CCL)(NYSE:CUK) said it raised US$10bn through financing transactions including borrowing facilities and debt holiday amendments.

The cruise operator said the cash will be enough to carry on for another full year, although it recognised the long-term risks on the travel industry such as change in policy and consumer behaviour.

READ: Carnival unveils new cruise ship delivery schedule and cancellations following pandemic disruption

In the quarter to May 31, the company swung to a US$4bn loss before tax from last year’s US$459mln profit amid cancellations. Passenger ticket revenue crashed 86% to US$446mln.

The FTSE 250-listed firm has reduced annual costs by US$7bn and slashed capital expenditure by US$5bn over the next 18 months, including a 9% cut to capacity by disposing of 13 ships.

The remainder of the financial year to November is estimated to see a cash burn of US$650mln per month.

AIDA will be the first of its nine brands to resume operations with three ships in Germany in August.

But earlier on Friday the UK Foreign Office advised against travelling on cruises, leaving passengers unable to claim insurance.

Shares in Carnival advanced 3% to 971.71p, but were still 69% below end of February levels.

Quick facts: Carnival Corporation

Price: 14.02 USD

NYSE:CCL
Market: NYSE
Market Cap: $10.98 billion
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