• Write a Review
  • Boards
  • Log In
You may also like
Carnival Corporation to Sell More Cruise Ships
Carnival Inspiration (Photo: Carnival Cruise Line)

Carnival Corporation to Sell More Cruise Ships

Carnival Corporation to Sell More Cruise Ships
Carnival Inspiration (Photo: Carnival Cruise Line)

September 15, 2020

Chris Gray Faust
Managing Editor
By Chris Gray Faust
  • Facebook
  • Pinterest
  • Twitter
(12:45 p.m. EDT) -- Fans of older cruise ships should prepare themselves, as Carnival Corporation & plc  will be shedding more cruise ships from its collective fleet in the coming months.

The announcement, made in a preliminary Q3 financial filing to the SEC, brings the total number of sold ships from the global cruise company to 18.

In the filing, Carnival Corp. CEO Arnold Donald said the action was being taken to make the company's fleet -- and company overall -- more efficient.
"We continue to take aggressive action to emerge a leaner, more efficient company," he said in the filing. "We are accelerating the exit of 18 less-efficient ships from our fleet. This will generate a 12 percent reduction in capacity and a structurally lower cost base, while retaining the most cash-generative assets in our portfolio."
The filing did not say what ships would be sold, or from what cruise lines. Carnival Corp. owns nine cruise lines, including Carnival Cruise Line, Princess Cruises, Holland America Line, Cunard and Seabourn Cruise Line, as well as the international lines Costa Cruises, AIDA Cruises, P&O Cruises and P&O Cruises Australia.
So far, ships that have been sold for scrap include several of Carnival Cruise Line's oldest ships -- its Fantasy-class, including Fantasy, Fascination, Imagination and Inspiration, along with Costa Victoria. (Cruise Critic is keeping a running tally.)
The company also sold four Holland America ships (Maasdam, Veendam, Amsterdam and Rotterdam), three Costa ships (Costa Atlantica, Costa Mediterranea and Costa neoRomantica); two P&O Australia ships (Pacific Aria and Pacific Dawn) and P&O's Oceana. That leaves three, yet unnamed ships that will leave the Carnival Corporation fleet.

Costa Restarted, AIDA To Follow

Costa  Deliziosa  Trieste 6 sept
The filing also changed the company's third-quarter adjusted net loss to $1.7 billion. The company is ending the quarter with $8.2 billion in cash and cash equivalents.
On the positive side, Donald noted that Costa has resumed sailing seven-day cruises in Italy. AIDA will also follow in the fall.
"Our business relies solely on leisure travel, which we believe has historically proven to be far more resilient than business travel and cannot be easily replaced with video conferencing and other means of technology. Our portfolio includes many regional brands, which clearly position us well for a staggered return to service in the current environment," he said.

Booking Update

Ship Funnel on Carnival Dream
The company also provided a booking update, noting that cruises in the second half of 2021 that are on sale are at the higher end, pricewise, of the historical range, and similar to where bookings were in 2018 for the second half of 2019. "The company believes this demonstrates the long-term potential demand for cruising," he said.
Carnival reiterated its policy of offering guests on canceled cruises a choice of a refund or a 125 percent Future Cruise Credit. As of August 31, 55 percent of the booked passengers had requested refunds, while 45 percent chose the FCC option. About 55 percent of the bookings taken during the quarter ending August 31 were new bookings, as opposed to FCC rebookings, the company said -- "despite minimal advertising or marketing."
As SEC documents usually do, the company put forward a positive outlook, despite the COVID-19 challenges and uncertainty surrounding U.S. cruising.
"With two-thirds of our guests repeat cruisers each year, we believe the reduction in capacity leaves us well positioned to take advantage of the proven resiliency of, and the pent up demand for cruise travel -- as evidenced by our being at the higher end of historical booking curves for the second half of 2021," Donald said.
"We will emerge with a more efficient fleet, with a stretched out newbuild order book and having paused new ship orders, leaving us with no deliveries in 2024 and only one delivery in 2025, allowing us to pay down debt and create increasing value for our shareholders."
How was this article?
Popular with cruisers like you
Just Back From the Bubble: Cruising In Maine, On the Only Ship Sailing in the U.S.

(6:15 p.m. EDT) -- Out on the deck of Stephen Taber, a 149-year-old schooner that is one of only two overnight passenger ships currently sailing in the United States, the wind picks up. I shiver, despite the numerous layers donned to protect against the chilly Maine night. The galley below deck, heated by a massive wood-burning stove, seems warm and inviting.

I begin the mental gymnastics that have become second nature during the pandemic, with conflicting feelings cartwheeling through my head. Everyone onboard, both crew and passengers, has been COVID tested (in some cases, twice, thanks to entrance requirements from both the state of Maine and Taber's

P&O Australia Transfers Pacific Dawn from Its Cruise Fleet

(7:05 p.m. BST) -- P&O Cruises Australia announced it has sold its 1,546-passenger Pacific Dawn ahead of its planned removal from the P&O fleet in February.

The 70,000-ton ship was originally scheduled to transfer to Cruise & Maritime Voyages in 2021. Following the collapse of CMV in July, the ship's future was placed in doubt.

A specific buyer has not been named. It is not immediately apparent if the ship will be placed in further service with another line or sold for scrap.

The ship, which entered service in 1991 as Princess Cruises' Regal Princess, has made more than 610 voyages for P&O Cruises Australia since joining the fleet in 2007. P&O notes the ship has carri

Carnival Cruise Line's Mardi Gras Sets Out on Sea Trials

(1:45 p.m. EDT) -- Carnival has sent its hotly-anticipated cruise ship Mardi Gras out on its first sea trials.

The trials, which test a ship's technical and marine handling capabilities, began today from the Meyer Turku shipyard in Turku, Finland. They are expected to last for a period of 10 days,

Once completed, Mardi Gras will return to the shipyard for final fitting-out of the vessel's interior spaces before setting sail for the United States.

Carnival's Mardi Gras is the first Carnival vessel to be built on the Excellence platform that also includes P&O's new Iona and AIDA's AIDAnova. Mardi Gras will be the first Carnival ship of

CLIA Australasia Launches Advisory Group to Support Australian Return to Cruise

(10:30 a.m. EDT) -- CLIA Australasia has created a new Cruise Suppliers Advisory Group in response to Australia's current ban on cruises, which is scheduled to run through until at least December 17, 2020.

The Advisory Group will include representatives from Australia's transport companies, food and beverage providers, local farmers and wholesalers who provide provisions, services and goods for the Australian cruise industry.

The goal of the Advisory Group is to support a phased return to cruise operations in Australia. CLIA Australasia managing director Joel Katz had said the Advisory Group would meet regularly and would play a part in the

Swan Hellenic Reveals Name of New Cruise Ship at Keel-Laying Ceremony

(9:31 a.m. EDT) -- The keel laying ceremony for the first of Swan Hellenic's two new ice-class expedition cruise ships took place in Helsinki today.

The first 347-ton block of the ship was set on the keel over coins to bring good luck in accordance with ancient maritime custom.

Swan Hellenic announced at the ceremony that the ship would be christened SH Minerva, a nod to the name of the sole vessel operated by the original Swan Hellenic -- one of the U.K.'s best-known cruise lines, which went bust in 2017.

“We’re excited and honoured to take Swan Hellenic into this next chapter and look forward to meeting you on board when we head to Antarctica in Novembe

Want to cruise smarter?
Get expert advice, insider tips and more.
By proceeding, you agree to Cruise Critic’s Privacy Policy and Terms of Use.
Cookie Consent