The American cruise giant Norwegian Cruise Line has decided to reduce its investments by $515 million, equivalent to 5.2 billion kronor, to deal with the effects of the corona crisis, writes Reuters.
The cruise giant, which last year had sales of nearly $6.5 billion, is also withdrawing its full-year forecast. The company has canceled all cruises until June 30. The empty schedule is estimated to cost the company between $100 million and $150 million each month, writes Reuters.
The US cruise industry has been hit hard by the ongoing crisis, especially given that the major companies do not meet the requirements for government support. Companies receiving support must be ”organized in the US”, have significant operations in the US and have the majority of their employees in the US.
For example, Norwegian Cruise Line has its company registered in Bermuda, even though its headquarters are in the US. The industry's other two major players, Carnival and Royal Caribbean, have their legal domiciles in Panama and Liberia, respectively.
Following Monday's announcement of cost-cutting measures, Norwegian Cruise Line rose just over 6 percent on Wall Street. However, since the beginning of the year, the stock has fallen over 80 percent.
Sector peers are also rising. Royal Caribbean is up 8.5 percent, which means that the year's result is minus 71 percent. Carnival is up 9 percent and is thus down 75 percent since the turn of the year.
Source: di.se
