Cruise operators increasing credit limits, borrowing, to survive Covid-19

Royal Caribbean Cruise Lines and Norwegian Cruise Line Holdings have increased their credit facilities to boost liquidity. RCL said last week that it had increased its credit capacity to $550m. It withdrew its first-quarter and full-year guidance for 2020. RCL said that it was cutting capital spending and operating costs, and was taking other actions to improve liquidity by at least a further $1.7bn this year.

Norwegian said last week that it had entered a $675m credit agreement with lenders, maturing on March 4th 2021. It said the loan was secured “given the continued uncertainty surrounding the Covid-19 coronavirus”.