News

NCLH: deep second quarter loss, sharp rise in interest expenses, unable to provide guidance for rest of 2020

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 07 August 2020 07 August 2020

Norwegian Cruise Line Holdings Ltd (NCLH), the world’s third largest listed cruise ship operator, has reported a deep loss for the second quarter due to the Covid-19 outbreak and said it is unable to give a guidance regarding its result for the rest of the year.

While revenues decreased, interest expenses almost doubled due to rising debt.

Group net loss amounted to $715.2 million compared to a profit of $240.2 million profit in the prior year. Revenue decreased to $16.9 million compared to $1.7 billion in 2019 due to the complete suspension of voyages in the quarter.

Interest expense, net was $114.5 million in 2020 compared to $66.0 million in 2019. The change in interest expense reflects additional debt outstanding, partially offset by lower LIBOR rates. Included in 2020 were losses on extinguishment of debt and debt modification costs of $21.2 million compared to $1.2 million in 2019.

Total cruise operating expense decreased 68.5% in 2020 compared to 2019. “In 2020, our cruise operating expenses were primarily related to the continued payment of protected commissions as additional sailings were cancelled, crew costs, including salaries, food and repatriation costs, and fuel,” NCLH said in a statement.

“As a consequence of Covid-19, while the Company cannot estimate the impact on its business, financial condition or near- or longer-term financial or operational results with certainty, it expects to report a net loss on both a U.S. GAAP and adjusted basis for the third quarter ending September 30, 2020 and the year ending December 31, 2020,” the company said.

P&O Cruises expects delivery of Iona soon, second ship December 2022

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 04 August 2020 04 August 2020

P&O Cruises, the UK focused contemporary market unit on Carnival Corporation & Plc group, said it expects to take delivery of Iona in a few weeks’ time and the second, as yet unnamed sister ships, in December 2022.

“P&O Cruises has announced that it plans to take delivery of Iona “before the autumn” and that following discussions with the Meyer Werft shipyard in Papenburg Germany, Iona’s as yet unnamed sister ship will be delivered in December 2022,” the company said in a statement.

The second ship was originally du to enter service in May 2022 and Iona early in this summer.

“Whilst our operations as currently paused, we are delighted that we have more clarity on the arrival of these two new ships.

The final outfitting of Iona is almost complete and is looking stunning and we will take delivery of her before the autumn. We also now know that her sister ship will join the fleet at the end of 2022, said P&O Cruises president, Paul Ludlow, in the statement.

Itineraries for the second ship will go on sale in Spring 2021, P&O Cruises added.

MSC Cruises provides passenger-centric detail on how its cruises will adapt in pandemic era

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 03 August 2020 03 August 2020

As cruising struggles to adapt to travel procedures and protocol in Covid-19 pre-vaccine times, MSC Cruises tackled today one of the biggest questions travelers have about cruise travel today: How will health protocols impact the onboard experience?

In a press conference today in Italy, where MSC Cruises' president Gianni Oronato also provided information about progress the line is making on other back-to-service fronts, noting in a press release "that From the moment a guest starts to plan and book to the moment they return home, MSC Cruises has assessed every touchpoint of their vacation to put in place the appropriate health and safety measures." In addition, MSC added, "guests will be supported every step of the way with simple and practical information, clear booking conditions and supporting technology to make the process smooth and seamless."

Specifics about consumer impacts as they would apply to a possible summer start of cruising in the Mediterranean only, as revealed by Onorato, include:

– For this initial phase of the restart of operations, the two MSC Cruises’ ships operating in the Mediterranean for the current summer season will initially only welcome guests who are residents in Schengen countries[1]. Additionally, their itineraries have been designed according to the accessibility of the ports, reducing — where possible — the need for guests to make use of public transport or flights, and have been planned in conjunction with the authorities.

– Guests residing in countries who are unable to sail on the summer Mediterranean cruises will be contacted by MSC Cruises with options for their vacation plans.

– For guests on board both ships, the MSC for Me app will support and facilitate the new health and safety measures. The app can be used to book services as well as to manage their daily activities on board and source information.

– Additionally, on board MSC Grandiosa every guest and crew member will be provided with a complimentary MSC for Me wristband, which facilitates contactless transactions around the ship as well as providing contact and proximity tracing.

– A new Information Center, accessible by telephone, will allow guests to call Guest Services for information, rather than having to go to the desk in person.

– Onboard activities and entertainment have been redesigned to enable smaller group sizes and guests should book in advance. A rich program of activities will be available throughout the cruise including themed events, fun games, talent shows, fitness, dance and more.

– Award-winning children activities and family live game shows will be available each day. New spaces on board will be reserved for children and teenagers as the youth areas will operate at a reduced capacity. Parents taking an excursion can still leave children with the youth staff by making a reservation one day in advance. Lunch and dinner with the youth staff will still take place along with the most popular kids’ activities such as MSC Dance Crew, Cabin 12006 family game show & web series and the LEGO experience.

– Wide choice of live entertainment will continued to be offered around the ship. As the capacity of the theater will be reduced to ensure responsible social distancing, the entertainment schedule will be adapted so all our guests can still enjoy a great variety of award-winning shows.

– Restaurants, bars and lounges, will allow for social distancing and all meals and drinks will be served to guests at their table. The buffet restaurant will offer a new service concept and a new guest flow to ensure social distancing. Instead of self-service, the guests will select what they want and the food will be plated and handed to them to take back to their table to ensure the highest level of health and hygiene measures are followed. For a contactless experience, guests will be able to access restaurant and bar menus from their personal mobile device by scanning a QR code.