Coronavirus will have a “material impact” on Carnival Corporation’s financial results – unanticipated in the company’s previous 2020 earnings guidance.
The cruise giant said as the situation in Asia surrounding the virus continued to evolve, it was “currently unable to determine the full financial impact” it would have upon trading.
However, Carnival said although it was not currently planning to suspend its Asia operations, hypothetically doing so through to the end of April, would impact its 2020 performance by $0.55 to $0.65 per share, including any guest compensation.
The company is currently evaluating contingency plans to “mitigate the impact” of Coronavirus and said in a statement it would be providing an update with its first quarter 2020 earnings release in late March.
It was announced today (13 February) that passengers quarantined onboard Princess Cruises’ Diamond Princess off the coast of Japan will be allowed to come onshore.
About 2,600 guests and 1,000 crew members on Diamond Princess have been held in Yokohama since last week.
The number of people onboard who have been infected with the virus, which has killed more than 1,300 people in China, has now climbed to 218.
In a statement, Carnival said: “The safety of guests and employees, compliance and protecting the environment are top priorities for the company. The company’s medical experts are coordinating closely with the US Centers for Disease Control and Prevention and the World Health Organization to implement enhanced screening, prevention and control measures for its guests, crew and ships.
“The company’s global team is working tirelessly to support guests impacted by voyage disruptions during this unprecedented time. Travel restrictions as a result of Coronavirus necessitated the suspension of cruise operations from ports in China, as was previously announced, and are now resulting in the cancellation of voyages in other parts of Asia.
“Significant events affecting travel typically have an impact on booking patterns, with the full extent of the impact generally determined by the length of time the event influences travel decisions.
“As a result of Coronavirus, the company believes the impact on its global bookings and cancelled voyages will have a material impact on its financial results which was not anticipated in the company’s previous 2020 earnings guidance.”