In light of the ongoing outbreak of COVID-19, Royal Caribbean Cruises announced that has increased its revolving credit capacity by $550 million, bolstering the company’s liquidity, according to Reuters.
In fact, the cruise company plans to reduce spending and operating expenses, in an effort to advance liquidity by at least another $1.7 million during 2020.
Moreover, Royal Caribbean will cut capital and operating expenses for 2021 as well.
For the records, this action came following the U.S. Department of State’s Travel advisory, which recommended the region’s citizens to avoid traveling by cruise ships.
Specifically, it is reported that the US is discussing about ways to discourage US travellers from taking cruises, as part of Trump’s administration efforts to limit the spread of the coronavirus.
The cruise owner informed that its 2020 guidance did not include the impacts of the coronavirus. Amid the situation and the government’s recent actions, the company is withdrawing its first quarter and full-year 2020 guidance.
These are extraordinary times and we are taking these steps to manage the company prudently and conservatively. I am proud of the work our teams are doing to address this unprecedented situation.”
…Richard D. Fain, chairman and CEO concluded.
See also
Do’s and Don’ts when talking about COVID-19
WHO advice on how to cope with stress during COVID-19
