Carnival CEO: At Least Two More Years Of Choppy Waters For Cruise Sector

The head of Carnival, the world’s largest operator of passenger cruises, told the Financial Times (FT) it is likely to be at least 2023 before the cruise industry returns to pre-pandemic business levels.

Carnival may have all its ships sailing by the end of 2022, company CEO Arnold Donald reportedly told FT, but even if that happens, it will be with fewer ships because Carnival only has 88 ships now, having retired 19 during the pandemic.

One obstacle he cited, according to FT, is the variety of regulations the company will face among the destinations it serves. It’s one thing to cruise into the open ocean; it’s another altogether to visit a port city. As Carnival tests the waters for returning to business in parts of the world, it has been sending ships for the most part on out-and-back cruises that don’t include ports of call.

According to FT, the United Kingdom has set May 17 for the return of cruise ships to its waters, but the United States has yet to set a date for lifting restrictions.

Carnival has enough capital to run through 2022 even without new revenue from cruises, Donald reportedly told FT. The company has about 90,000 crew members.

One factor the cruise ship industry will have to grapple with is whether customers, given the number of COVID-19 transmissions that occurred aboard ships in the earliest days of the pandemic, might pursue alternative leisure options such as flying to destinations, PYMNTS reported. But cruise ships are spared a major challenge confronting airlines — whether business travelers, who deliver a significant portion of air carrier profits, will resume traveling after finding out how much business can be performed via apps such as Zoom.