14th May 2020 13:47
(Alliance News) - Carnival PLC said Thursday it will begin a series of layoffs, furloughs, reduced work weeks, and salary reductions across the company to combat the lack of revenue due to the Covid-19 pandemic.
The cruise operator said these moves will "contribute hundreds of millions of dollars in cash conservation on an annualised basis".
Carnival noted it has seen "no meaningful revenue" since it paused its cruise operations in early March.
President & Chief Executive Arnold Donald said: "Taking these extremely difficult employee actions involving our highly dedicated workforce is a very tough thing to do. Unfortunately, it's necessary, given the current low level of guest operations and to further endure this pause."
Donald noted there is a "tremendous anticipation for a return to cruising".
He continued: "It's also encouraging to note that the majority of guests affected by our schedule changes want to sail with us at a later date, with fewer than 38% requesting refunds to date. Our booking trends for the first half of 2021, which remain within historical ranges, demonstrate the resilience of our brands and the strength of our loyal recurring customer base, of which 66% are repeat cruisers. In addition, we plan to stagger fleet re-entry to optimise demand and operating performance over time."
Shares in Carnival were down 4.6% in London on Thursday afternoon at 800.00 pence each.
By Paul McGowan; [email protected]
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