REG-Carnival PLC: Carnival Corp Taking Steps to Manage Pause in Operations

CarnivalAnnouncement

14/05/2020 13:10

Carnival Corporation Announces Additional Steps to Further Strengthen Ability
to Manage through Extended Pause in Guest Operations

MIAMI, May 14, 2020 /PRNewswire/ -- Carnival Corporation & plc
(https://c212.net/c/link/?t=0&l=en&o=2803999-1&h=1736142155&u=http%3A%2F%2Fwww.carnivalcorp.com%2F&a=Carnival+Corporation+%26+plc)
(NYSE/LSE: CCL; NYSE: CUK), the world's largest leisure travel company and
cruise operator, announced today a number of additional actions it is taking
to further strengthen its liquidity position in the event of an extended pause
in guest operations due to COVID-19.

Carnival Corporation was the first to pause the guest cruise operations of
some of its brands in the face of the impact of the COVID-19 global pandemic,
followed on March 13th by the rest of its brands and the other cruise
companies. That action was taken before stay-at-home or shelter-in-place was
implemented in the U.S. and before U.S. hotels, airlines, restaurants and
other forms of public gathering or transportation began shutting down or
limiting service.

Last month the company completed a successful financing effort with a heavily
oversubscribed offering of senior secured notes, senior convertible notes and
common stock, netting $6.4 billion of additional liquidity. To further
strengthen liquidity, Carnival Corporation and its brands are announcing a
combination of layoffs, furloughs, reduced work weeks and salary reductions
across the company, including senior management. These moves will contribute
hundreds of millions of dollars in cash conservation on an annualized basis.

Since the company paused its guest cruise operations in early March, workforce
changes were largely placed on hold, even in the face of no meaningful
revenue, to forestall the financial impact on its employees while still
meeting its fiscal responsibilities – deferring employee actions beyond that
of many others in similar situations during this pandemic. The company
continues to support its travel agent partners by paying commissions on
canceled cruises and on future cruise credits when guests rebook. 

In addition to its continuing efforts to repatriate the many thousands of crew
members still on its ships to their home countries, the company is also
working closely with governments, regulatory agencies, health and infectious
disease care experts around the globe to develop the best practice public
health protocols to address the threat of COVID-19 for when guest operations
resume. Repatriation efforts include chartered flights as well as rerouting
its ships to crew home ports where those ships would not have otherwise
sailed. The company is also working closely with its many destination partners
as it continues to evaluate the best options and safety protocols for return
to service.

"Taking these extremely difficult employee actions involving our highly
dedicated workforce is a very tough thing to do. Unfortunately, it's
necessary, given the current low level of guest operations and to further
endure this pause," said Carnival Corporation & plc President & CEO Arnold
Donald. "We care deeply about all our employees and understanding the impact
this is having on so many strengthens our resolve to do everything we can to
return to operations when the time is right. We look forward to the day when
many of those impacted are returning to work with us and we look forward to
the day, when appropriate, that once again our ships and crew are delighting
millions of people at sea and we can be there for the many nations and
millions of people who depend on the cruise industry for their livelihood.

Added Donald, "We also want to thank our guests for their many thoughtful
notes and overall outpouring of support. It is clear there is tremendous
anticipation for a return to cruising. It's also encouraging to note that the
majority of guests affected by our schedule changes want to sail with us at a
later date, with fewer than 38 percent requesting refunds to date. Our booking
trends for the first half of 2021, which remain within historical ranges,
demonstrate the resilience of our brands and the strength of our loyal
recurring customer base, of which 66% are repeat cruisers.  In addition, we
plan to stagger fleet reentry to optimize demand and operating performance
over time."

The cruise industry is a significant contributor to the U.S. and global
tourism sectors, according to the Cruise Lines International Association
(CLIA), with economic impact in the U.S. exceeding well over $50 billion in
total contributions. On a global scale, the economic output due to the cruise
industry continues to produce new jobs and income, generating a total global
output of over $150 billion and supporting over 1.2 million total jobs.

About Carnival Corporation & plc
Carnival Corporation & plc is the world's largest leisure travel company with
a portfolio of nine of the world's leading cruise lines. With operations in
North America, Australia, Europe and Asia, its portfolio features Carnival
Cruise Line, Princess Cruises, Holland America Line, Seabourn, P&O Cruises
(Australia), Costa Cruises, AIDA Cruises, P&O Cruises (UK) and Cunard.

Additional information can be found on www.carnival.com, www.princess.com,
www.hollandamerica.com, www.seabourn.com, www.pocruises.com.au,
www.costacruise.com, www.aida.de, www.pocruises.com and www.cunard.com.

CONTACT: Roger Frizzell, Carnival Corporation, rfrizzell@carnival.com, (305)
406-7862; Mike Flanagan, LDWW, mike@ldwwgroup.com, (727) 452-4538



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