Crystal Cruises’ new ship Crystal Endeavour, which had been due to be delivered this summer, looks set to be delayed, Hong Kong-based owner Genting has confirmed.
In a trading update, Genting said new ship deliveries – including those of Endeavour and Dream Cruises’ Global Dream – would be pushed back "by about a year".
Confirmation came ahead of Genting issuing a first-half profit warning; it expects to post an operating loss in excess of $300 million for the six months to 30 June, and a consolidated net loss of $600 million.
This compares to an operating loss of $38.3 million during H1 2019 and a consolidated net loss of $56.5 million.
Genting said the losses owed to the suspension of its entire cruise business and of shipbuilding operations at Germany’s MV Werften shipyards, owned by Genting.
Its cost-saving efforts include redundancies, pay cuts and unpaid leave, as well as effort to reduce overheads and operating costs.
These including laying up the majority of its ships with the exception of Explorer Dream, which is operating domestic voyages from Taiwan, and SuperStar Aquarius and SuperStar Gemini, which have been leased to the Singapore government.
All capital expenditure, other than that required to maintain the safety and security of its shops and health and safety of guests and employees, has been suspended.
On new ships, Genting said it would be "delaying delivery of Crystal Endeavor and Global Dream, under construction at V Werften shipyards, for about a year".
Genting has also sought German government support to shore up its shipyard operations, and is seeking "additional sources of finance to maintain its cruise business pending resumption of sailing".
"It is expected that the Covid-19 pandemic will continue to affect the group’s businesses, as the spread and development of the virus has created significant uncertainty over when authorities in the relevant cruising markets will allow resumption of the cruise travel," said Genting in a statement signed by chair and chief executive Tan Sri Lim Kok Thay.