Carnival Decided to Sell 18 Ships as Demand Shrinks in Cruising

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Carnival Corporation has decided that it will continue to shrink the size of its fleet as the cruise sector fights to regain from the Covid-19 shutdown.

In July, the company said it would dispose of 13 ships as demand shrunk.

That number has now risen to 18 – Carnival plans to deliver about 12 percent less power next year than in 2019.

Noting that all the ships that were sold for sale were older and less skilled, Carnival said that in 2019 the ships produced only three percent of its operating income.

Being older ships, Carnival added that their adjustment would enhance the fuel efficiency at the corporation.

A total of eight ships have already been sold and hand over to new owners.

The news came as Carnival reported that $2.9 billion GAAP net loss in the third quarter of the carnival, which converted to $1.7 billion.

The company said the average monthly cash burn stood at $770 million, in line with previous monthly estimates.

Since the announcement to reduce its fleet, Carnival Holland has confirmed the sale of four cruise ships from the America line, two from the Costa Cruise, two from the Carnival Cruise Line, and one from P&O.

Besides that, two more ships from Costa Cruise were already sold and due to supply in a new Chinese joint venture, and two ships were sold from P&O Australia and remaining for delivery in 2021 to Cruise and Maritime Voyages.

CMV, however, goes into administration during the summer.

Arnold Donald, the chief executive of Carnival Corporation, tried to strike a chord in an enthusiastic tone.

He stated that with two-thirds of their guests rehash cruises every year, he believes that the cut down the capacity leaves them well-positioned to take benefit of the proven resiliency of, and the pent up demand for cruise travel – as proved by their being at the higher end of historical booking curves for the second half of 2021.

He also added, “We will come up with a more efficient fleet, with an extended newbuild order book and having postponed new ship orders, leaving us with no allocation in 2024 and only one allocation will be in 2025, allowing us to pay down debt and will create growing value for our shareholders.”

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