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July 30, 2020

Carnival to remove two additional ships from fleet

Carnival Corporation has announced plans to remove two additional ships from its fleet amid the Covid-19 pandemic.

Carnival Corporation has announced plans to remove two additional ships from its fleet amid the Covid-19 pandemic.

Earlier this month, Carnival announced plans to sell 13 ships from its fleet this year.

Last month, the company announced it will sell six of its ships to deal with a $4.4bn loss in the second quarter of the year.

The decisions to remove the ships is expected to align the fleet according to the anticipated phased restart of cruise operations and create cost savings.

Carnival Corporation has not revealed the names of the two ships.

The senior management of the company said that the carrying values of two ships are not recoverable compared to the remaining future cash flows.

In a statement, Carnival said: “Consequently, and in combination with other ships and notes receivables with recoverability impacted by the current environment, we expect to record non-cash impairment charges during the third quarter of 2020.

“Although the actual amount of the charges has not yet been finalised, we expect the aggregate impairment charge to be in the range of $600m to $650m.”

Carnival Corporation owns nine cruise lines, which are Carnival Cruise Line, Princess Cruises, Holland America Line, P&O Cruises (Australia), Seabourn, Costa Cruises, AIDA Cruises, P&O Cruises (UK) and Cunard.

Earlier this month, Holland America Line sold four cruise ships, Amsterdam, Maasdam, Rotterdam and Veendam, while P&O Cruises sold the Oceana cruise ship, which is one of the oldest ships in the fleet.

Carnival Cruise Line also announced that its new cruise ship Mardi Gras will begin operations in 2021 due to delay in delivery caused by the Covid-19 pandemic.

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