Norwegian Cuts Pay 20%; Moves to 4 Day Work Week

Norwegian Cruise Line

Norwegian Cruise Line is cutting pay and moving to a four-day work week for most staff starting on March 30, according to an email sent to staff members on Wednesday, and first reported by Business Insider.

The company is said to be cutting salaried employee pay by 20 percent, starting on March 30, according to the memo.

The changes will last through mid June, the memo said.

Royal Caribbean Suspends U.S. Cruises, Joining Rivals

March 13 (Reuters) – Royal Caribbean Cruises Ltd said on Friday it was suspending its cruises in the United States for 30 days, an hour after Norwegian Cruise Line Holdings Ltd said it suspended all its cruise voyages through April 11.

Earlier larger peer Carnival Corp’s Italy-based unit Costa Cruises halted its trips until April 3. Carnival’s other subsidiary Princess Cruises had suspended its voyages for two months on Thursday.

Costa Cruises accounted for 15% of Carnival’s overall capacity as of Nov. 30, offering voyages in Asia and Europe, including the Mediterranean.

Image result for ncl escape

The Princess Cruises unit has been in the spotlight after its Diamond Princess and Grand Princess ships were quarantined after they became hotbeds for coronavirus infections.

Norwegian, however, said no confirmed case of the virus was reported across its 28 ships.

Walt Disney’s Disney Cruise Line and Finland’s Viking Line have also temporarily paused operations as the global cruise industry battles cancellations in the wake of the fast-spreading virus.

The outbreak, described by the World Health Organization as a pandemic, has infected thousands in the Mediterranean countries such as Italy, where it has claimed more than 1,000 lives.

Carnival said it was checking if their guests are aged over 70 years and would deny entry to people with chronic or severe medical conditions.

Separately, credit rating agency S&P Global said it lowered the credit ratings on Carnival and its unsecured debt to ‘BBB’ from ‘A-‘, on expectations of a significant loss in revenue and cash flow in 2020.

Stocks of cruise operators are among the worst hit, with Carnival, Norwegian and Royal Caribbean down between 66% and 81% this year through Friday’s close. (Reporting by Praveen Paramasivam in Bengaluru; Editing by Sriraj Kalluvila and Krishna Chandra Eluri)

(c) Copyright Thomson Reuters 2019.

Cruise Lines 2019 Q4 Breakdown: By the Numbers

Seabourn, Royal Caribbean and AIDA Ships in Antigua

Cruise Industry News takes a look at the financial performance of the “big three” following the final quarter of 2019.

Takeaways:

While gross revenue was up for Q4 2019 for the three publicly-traded cruise companies, increased operating expenses led to reduced operating income, net income and net income per passenger day, compared to Q4 for the previous year.

Net revenue per passenger day was also down year-over-year for Carnival Corporation, up noticeably for Royal Caribbean and up slightly for Norwegian.

Gross revenue per passenger day was significantly up for all three companies, including onboard spending, with gross ticket revenue per day also up for Royal Caribbean and Norwegian, but down for Carnival.

Carnival saw the biggest difference between gross and net onboard revenue: more than $25, making it flat with last year, while Royal had nearly a $12 drop and Norwegian a little more than $10, and up from last year.

Both Carnival and Royal Caribbean saw a decrease in fuel costs year-over-year while Norwegian saw its fuel spend to go up.

Carnival cited the regulatory change preventing travel to Cuba, geopolitical events in Arabian Gulf, Hurricane Dorian, an unscheduled drydock, and multiple shipyard delays. Royal cited the Oasis drydock mishap, Cuba and Hurricane Dorian, and Norwegian also cited Cuba and Dorian.

Because of the fleet mix, Norwegian continued to generate the highest gross and net ticket and onboard spend revenue.

2019 financeCruise Industry Financial Tracking

The Cruise Industry Financial Tracking Report provides an in-depth look into the financial metrics of the leading cruise companies. Learn more.

Included: Carnival, Royal Caribbean, Norwegian, MSC, Star/Genting, Royal Olympic, P&O Princess, Regent, American Classical Voyages and Commodore.

Key metrics include revenue, operating expenses, operating income and net income, as well as those metrics on a per passenger day basis. We also look at EPS, fleets, berths and passenger cruise days.