Will cruises become a thing of the past? Norwegian, Carnival and Royal Caribbean face awkward future

Norwegian Cruise Line, the world’s third-largest cruise operator, has warned there is “substantial doubt” that it will be able to continue in the industry, following the severe impact of the corona virus pandemic on travel.

The company, which is listed on the New York stock market, said: “Covid-19 has had, and is expected to continue to have, a significant impact on our financial condition and operations, which adversely affects our ability to obtain acceptable financing.”

In a filing with the US Securities and Exchange Commission (SEC), Norwegian said the difficulties it had experienced arranging emergency funding had “raised substantial doubt about the company’s ability to continue as a going concern, as the company does not have sufficient liquidity to meet its obligations over the next 12 months”.

Cruise operations have been suspended around the world since March. The biggest worry is how cruise ships can function keeping up adequate social distancing. As a result, Norwegian’s rivals Carnival and Royal Caribbean Cruises have also warned about their prospects.

The industry was left out of the US government’s $2.3 trillion stimulus package for troubled companies, as all the big players are incorporated outside the country. Norwegian is registered in Bermuda.