Covid-19: Royal Caribbean Cruises increases credit capacity

11 March 2020 (Last Updated March 12th, 2020 12:38)

Royal Caribbean Cruises has increased credit capacity by $550m to strengthen its liquidity, following the coronavirus (Covid-19) outbreak.


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Royal Caribbean Cruises has increased credit capacity by $550m to strengthen its liquidity, following the coronavirus (Covid-19) outbreak.

The company is also planning to decrease capital expenditure and operating expenses to boost liquidity by another $1.7bn this year.

The company is also planning to reduce capital expenditure and operating expenses next year.

The 2020 guidance issued by the company did not include Covid-19 impact.

Based on the current procedures related to the outbreak, government actions, uncertainty of the duration, magnitude and geographic reach of the disease, Royal Caribbean will withdraw its guidance for the first quarter and the entire year.

Royal Caribbean chairman and CEO Richard D Fain said: “These are extraordinary times and we are taking these steps to manage the company prudently and conservatively. I am proud of the work our teams are doing to address this unprecedented situation.”

The company shares are reported to have lost approximately 64% of their value.

Last month, Royal Caribbean announced a ban of people who carry passports from China, Hong Kong and Macau to limit the spread of the coronavirus.

The company also announced that passengers who have visited the three regions in the past 15 days will also be barred from boarding the cruise ship.

Costa Crociere changed the itineraries of the ships that will dock at Italian ports, following Italy’s lockdown that was announced to limit the spread of Covid-19.

The epidemic has so far killed over 4,200 and infected more than 119,000 people around the world.