Cruise Firms Will Survive Virus Impact, Instinet's Curtis Predicts

The video discusses the financial strategies of cruise lines during a crisis, highlighting their ability to draw down bank lines and cut operating costs, providing a year's cushion. It compares Norwegian and Carnival, noting Norwegian's better position despite Carnival's perceived stronger balance sheet. The expected recovery timeline is 6-9 months, with partial operations resuming in 2-3 months. Pricing and occupancy are projected to recover slowly, with revenues in 2021 at 50-60% of 2020 expectations. Liquidity is not a major concern due to potential government loan guarantees.

What financial strategies are cruise companies using to ensure they have a cushion during the crisis?

• Drawing down bank lines and cutting operating costs

• Increasing ticket prices

• Reducing the number of cruises

• Expanding their fleet

Which cruise company is perceived to have a better balance sheet going into the crisis?

• Royal Caribbean

• Carnival

• Norwegian

• MSC Cruises

What is the expected timeframe for a partial resumption of cruise operations?

• 12 months

• 6 to 9 months

• 2 to 3 months

• 1 to 2 months

What occupancy rate is expected for cruise lines in the third quarter of recovery?

• 30 to 40%

• 40 to 50%

• 50 to 60%

• 60 to 70%

What is the anticipated revenue recovery for cruise lines in 2021 compared to 2020?

• 50 to 60%

• 40 to 50%

• 60 to 70%

• 30 to 40%