Norwegian Cruise Line Holdings has recorded a $1.9 billion loss in its first quarter as the coronavirus forced its three brands to suspend cruises.
The company, which owns the NCL, Oceania Cruises and Regent Seven Seas Cruises lines, said the raising of $2.4 billion in capital meant it was “well-positioned” to withstand the “unlikely scenario” of more than 18 months of voyage suspensions.
The $1.9 billion net loss for the three months to the end of March compares with a profit of $118 million for the same period in 2019.
Frank Del Rio, chief executive of Norwegian Cruise Line Holdings, said: “In recent weeks, we have taken decisive action to significantly strengthen our financial position in response to the Covid-19 global pandemic.
“We believe this capital raise, coupled with other ongoing liquidity-enhancing initiatives, makes us well-positioned to weather an unlikely scenario of over 18 months of suspended voyages.”
Del Rio added the company’s brands “continue to experience demand for voyages further in the future” - particularly from the fourth quarter of 2020 “accelerating” through 2021.
“As we prepare to resume sailings, we are working around the clock alongside US and global public health agencies and governments to develop and implement the next level of enhanced cruise health and safety standards,” he said.
Currently all of the company’s voyages are suspended up to the end of June 2020.
As part of its measures to cope with the impact of the Covid-19 crisis, NCL Holidings has temporarily furloughed around 20% of its shoreside workforce through 31 July, as well as reducing hours for those employees who continue working.