As China and other countries are moving aggressively to contain the spread of the virus, world’s second-largest cruise line operator Royal Caribbean Cruises Ltd has also implemented measures to minimize risk of its guests and crew through boarding restrictions and itinerary changes. The company also communicates regularly with the CDC, the WHO and other health authorities around the world.
The company is denying boarding to those that have traveled from, to or through mainland China or Hong Kong in the past 15 days and performing mandatory specialized health screenings on at-risk guests and crew. The company is assessing the developments on a regular basis and will update these measures as and when needed.
As said by RCL Chairman and CEO Richard Fain ‘It is important that every organization acts responsibly, and we have already taken aggressive steps to minimize risk through boarding restrictions and itinerary changes.Our shipboard and shoreside teams have been working tirelessly through these circumstances and I want to thank them for all of their extraordinary efforts, he added.
As a result of the travel restrictions in place and related circumstances, the company has now cancelled 18 sailings in Southeast Asia and has also modified a number of itineraries in response to the coronavirus outbreak, putting a crimp on the cruise company’s 2020 profit. Taken together, these measures have an estimated impact on the company’s financial performance for 2020 of approximately $0.65 per share. Though not currently planned, if the company was to cancel all of its remaining sailings in Asia through the end of April, it would significantly impact 2020 financial performance by an additional $0.55 per share.
The cruise market has been roiled by the virus, even in places untouched by the outbreak. Travel restrictions have forced the industry to turn away customers, and ships have been quarantined or not allowed to disembark in ports over fears of spreading the illness. So far Coronavirus has killed at least 1,367 in China and the country has recorded nearly 60,000 cases.
