Carnival Corporation has announced it will be accelerating the removal of less efficient cruise ships by removing a further five vessels from its global fleet.
Previously, Carnival were planning to dispose of 13 ships, but this has now increased by five, bringing the total number of ships being sold or scrapped to 18.
“In total, the 18 ships represent approximately 12 percent of pre-pause capacity and only three percent of operating income in 2019,” Carnival Corporation stated.
“The sale of less efficient ships will result in future operating expense efficiencies of approximately two percent per available lower berth day (“ALBD”) and a reduction in fuel consumption of approximately one percent per ALBD,” Carnival said.
“We continue to take aggressive action to emerge a leaner more efficient company. We are accelerating the exit of 18 less efficient ships from our fleet. This will generate a 12% reduction in capacity and a structurally lower cost base, while retaining the most cash generative assets in our portfolio,” commented Arnold Donald, CEO.
Based on the actions taken to date and the scheduled newbuild deliveries through 2022, the company’s fleet will be more efficient with a roughly 13 percent larger average berth size and an average age of 12 years in 2022 versus 13 years, in each case as compared to 2019.
Carnival Corporation has not said which cruise ships it now plans to remove, but earlier today, Peace Boat announced it would be welcoming what sounds like the current Sun Princess to its fleet in Spring 2021.
So far, Carnival Corporation has removed Costa Victoria, Costa neoRomantica, Oceana, Amsterdam, Rotterdam, Maasdam, Veendam, Carnival Fantasy, Carnival Inspiration, Carnival Imagination and Carnival Fascination. Some have been sold to new owners, while some have been scrapped or placed into long term lay-up.
Four ships were planned to leave the fleet before the impact of COVID-19. Two P&O Cruises Australia ships were due to go to now-defunct Cruise & Maritime Voyages, and two Costa ships were due to begin a new joint venture in China. It is not known what Carnival Corporation is now planning to do with these ships. There were also industry rumours that Carnival were looking to sell Cunard and Seabourn.
Carnival Corporation is the largest cruise corporation consisting of AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, P&O Cruises Australia, Princess Cruises and Seabourn.
So far, Carnival Corporation has made no fleet capacity changes to AIDA Cruises, Cunard, P&O Cruises Australia, Princess Cruises or Seabourn as a result of COVID-19.