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Carnival, Royal Caribbean, and Norwegian Cruise Line are taking a financial beating from the coronavirus - here's how much the companies predict it will hurt earnings this year
Carnival, Royal Caribbean, and Norwegian Cruise Line are taking a financial beating from the coronavirus - here's how much the companies predict it will hurt earnings this year
Mark MatousekFeb 25, 2020, 23:52 IST
J Pat Carter/Associated PressCarnival Cruise Line's Carnival Victory ship.
The Wuhan coronavirus has had a significant impact on the cruise industry this year.
Dozens of cruises have been canceled or changed.
Carnival Corp., Royal Caribbean Cruises, and Norwegian Cruise Line Holdings have predicted that the coronavirus will hurt their earnings this year.
The Wuhan coronavirus has forced cruise lines to cancel or change the itineraries for dozens of cruises this year, and that number could rise in the future.
These are the most recent projections that Carnival, Royal Caribbean, and Norwegian have made about the financial impact they expect the coronavirus to have in 2020.
Carnival Corp., the parent company of Carnival Cruise Line, said on February 12 that cancellations caused by the coronavirus will have a "material impact" on its 2020 earnings. The company said it was not yet able to project the extent of that impact, but added that if it had to cancel all of its cruises in Asia through the end of April, it would dent 2020 earnings by $0.55 to $0.65 per share.
In December, Carnival projected its adjusted earnings would amount to $4.30 to $4.60 per share this year.
"There are still too many variables and uncertainties to make a reasonable forecast for 2020," Royal Caribbean Cruises, the parent company of Royal Caribbean International, said on February 13.
Royal Caribbean said at the time that it had canceled 18 cruises in Southeast Asia and changed the itineraries for other sailings — moves the company projected would take $0.65 per share off of its estimated 2020 earnings of $10.40 to $10.70. In the event Royal Caribbean has to cancel all cruises in Asia through the end of April, it would remove another $0.55 per share this year, the company said.
Norwegian Cruise Line Holdings, the parent company of Norwegian Cruise Line, said on February 20 that after canceling or changing 40 cruises in Asia across its three brands, it expects the coronavirus to lower its projected adjusted 2020 earnings of $5.40 to $5.60 per share by about $0.75 per share. The company added that the coronavirus could end up having a larger financial impact by discouraging people from booking cruises.
"The Company's financial performance could be materially impacted if travel restrictions and COVID-19 concerns continue for an extended period of time," Norwegian said.
