Carnival Corp: 25 Ships Operating Could Cover Pause Costs for Fleet

Carnival Corporation will have nine ships operating soon between its AIDA, Costa, Cunard, Princess, P&O UK and Seabourn brands, and hopes to continue with a staggered restart.

How many ships will it take before the financials start looking better? Using 2019 as a baseline, a fleet of 25 ships operating may be the magic number, according to David Bernstein, chief financial officer, speaking on the company’s first quarter business update call on Wednesday.

Bernstein said that using 2019 numbers, if the company had its top 25 ships operating, at full occupancy, they would generate enough cash flow to cover the pause costs of 60 to 65 other ships 

Full occupancy will take time however, as Arnold Donald, CEO, said that initial sailings from the UK would start at modest occupancy levels.

“So we can have opportunity to practice the protocols and make sure everything is going as planned, we’re starting with less than 50% occupancy, but that will ramp up pretty quickly as we make certain that the execution is in place and going well,” Donald said.

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