Cruise line giant Carnival expects that the travel restrictions and cancelled voyages caused by the outbreak of the coronavirus will have a ‘material impact’ on its 2020 results that was not anticipated in its previous earnings guidance for the year.
In an update issued yesterday (12 February), Carnival said: ‘Travel restrictions as a result of Coronavirus necessitated the suspension of cruise operations from ports in China, as was previously announced, and are now resulting in the cancellation of voyages in other parts of Asia.’
The Carnival statement continued: ‘Since the situation continues to evolve, the company is currently unable to determine the full financial impact on its fiscal year 2020. However, while not currently planned, if the company had to suspend all of its operations in Asia through the end of April, this would impact its fiscal 2020 financial performance by $0.55 to $0.65 per share, which includes guest compensation. In addition, the impact on global bookings will further affect the company's financial performance. The company is currently evaluating contingency plans to mitigate the impact and will provide an update with its first quarter 2020 earnings release in late March.’
In China – the country where the outbreak is believed to have started – the national death toll has now risen above 1,350, with almost 60,000 infections in total.