World’s top three cruise lines accumulate over $60 billion in debt

World’s top three cruise lines accumulate over $60 billion in debt
World’s top three cruise lines accumulate over $60 billion in debt
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Written by Harry Johnson

For the world’s top three cruise lines, surviving the year took its toll resulting in a high level of cash burn and massive debt burdens

  • Norwegian Cruise Lines’ debt burden was over $12.15 billion
  • For Carnival Corporation, the debt was around $30 billion
  • Royal Caribbean, accumulated debt was over $18.95 billion

The year 2020 was unforgiving for cruise lines but 2021 seems to have started off on a slightly higher note. For the top three industry players, surviving the year took its toll resulting in a high level of cash burn and massive debt burdens.

According to the latest research data, the top three cruise lines have accrued more than $60 billion in debt during the pandemic period. Norwegian Cruise Lines’ debt burden was over $12.15 billion. For Carnival Corporation, it was around $30 billion while for Royal Caribbean, it was over $18.95 billion.

Deutsche Bank raised its price target on Royal Caribbean stock from $62 to $79. On the other hand, JP Morgan went from $91 to $100. As a result of this positive sentiment, the cruise company’s share price soared.

According to the industry data, Royal Caribbean’s share price as of March 24, 2021 was $82.45, up by 92.36% over the one-year period. Comparatively, in 2020, its share price fell by 44%.

Similarly, Carnival Corporation and Norwegian Cruise Lines are on an uptrend since the start of 2021. Trading at $25.79, Carnival is up by 59.8% over the one-year period, while Norwegian is up 61.1% at a share price of $25.40.

In Q4 2020, Royal Caribbean posted a net loss of $1.37 billion, sending its annual loss to $5.8 billion. Revenue for the period amounted to $34.1 million, a far cry from its Q4 2019 figure of $2.52 billion. For the full year 2020, its revenue totaled $2.2 billion.

Carnival Corporation posted a loss of $2.2 billion for its fiscal Q4 which ended in November 2020.

Analysts have, however, expressed optimism, projecting an increase of 13.6% for Carnival’s fiscal year 2021 revenue. In fiscal year 2020, the increase will be a stunning 227.4%.

About the author

Avatar of Harry Johnson

Harry Johnson

Harry Johnson has been the assignment editor for eTurboNews for mroe than 20 years. He lives in Honolulu, Hawaii, and is originally from Europe. He enjoys writing and covering the news.

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