- cruise companies like the carnival corporation are hit by the coronavirus outbreak.
- they are closely monitoring the situations and have cancelled voyages in Asia due to travel restrictions.
- However, this has hit its global booking percentage which is likely to go down
- if operations remain cancelled till April then it will have an impact on the financial earning of the companies
In a major development, the Carnival Corporation has issued a statement presenting the company’s forecasts for the future amid the coronavirus outbreak, highlighting that the virus spread may have a financial impact on the companies earnings in 2020, reports Safety4Sea
Monitoring Coronavirus Outbreak
The company notes that they are closely monitoring the situation, and their priority is the safety of guests and employees, compliance and protecting the environment.
Carnival’s medical teams are closely cooperating with the U.S. 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.
Actions Taken
Following the global travel restrictions, the company is cancelling all voyages in other parts of Asia.
Effect on Global Bookings?
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.
Asia Operation Suspension To Effect Annual Earning
Although the company is currently unable to determine the full financial impact on its fiscal year 2020, they expect that if the company suspends all operations in Asia through the end of April it would impact its 2020 financial performance by $0.55 to $0.65 per share, which includes guest compensation.
Financial Performance To Go Down?
In addition, the impact on global bookings will further affect the company’s financial performance. The company is currently evaluating contingency plans to mitigate the impact and will provide an update with its first quarter 2020 earnings release in late March.
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Source: Safety4Sea
