Cruise lines further extend freeze on cruises

Royal Caribbean Cruises and Norwegian Cruise Line Holdings have extended until July 31st the suspension of voyages, from June 30th.

Royal Caribbean has also warned of a Q1 loss, noting that it would have to pay between $590m and $610m in interest for the rest of the year on its borrowings, which now exceed $5bn.

RCC has pledged some of its cruise ships as collateral in recent months in order to raise cash. Its China operations are continuing, and the company said that booking volumes for the rest of the year were slowly improving, driven by demand for cruises later this year and in 2021.

Chief Financial Officer Jason Liberty told analysts  that “our current booking trends indicate that there is demand for cruising”.

Royal Caribbean said that the net loss attributable to the company for Q1 was $1.44bn.