Royal Caribbean Cruises Ltd has warned it will be cutting costs and taking “other actions” to mitigate the impact of the coronavirus.
The cruise giant, which owns Celebrity Cruises, Azamara and Silversea, has also withdrawn its first quarter and full-year 2020 guidance.
Royal it would be reducing “capital expenditures and operating expenses” this year and next.
A statement from the company said: “Due to the spread and recent developments related to the COVID-19 outbreak, the company has increased its revolving credit capacity by $550 million bolstering the company’s liquidity.
“The company is pursuing additional actions to improve its liquidity by reducing capital expenditures, operating expenses and taking other actions to improve liquidity by at least a further $1.7 billion in 2020. The company is also planning reductions to the 2021 capital expenditures and operating expenses.
“The company had previously communicated that its 2020 guidance did not include the impact of the COVID-19 outbreak. Given the recent government actions and the heightened impact and uncertainty of changes in the magnitude, duration and geographic reach of COVID-19, the company is withdrawing its first quarter and full-year 2020 guidance.”
Royal’s chairman and chief executive Richard Fain said: “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.”
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