Norwegian Cruise Line Faces Possible Cessation of Business

The coronavirus pandemic may be on the verge of claiming a major cruise company, as Norwegian Cruise Line has announced that it may be forced out of business due to financial difficulties brought on by the pandemic. 

 

Norwegian faces mounting financial difficulty as it contends with fixed costs associated with running a cruise business, as well as a wave of refund requests as people cancel their trips. The company is currently barred from cruising and is facing significantly declined bookings for the rest of the year, significantly affecting its revenues.

In a statement issued on Tuesday, Norwegian said that its accounting company has cast “substantial doubt” on Norwegian’s ability to continue as a going concern. WPTV.com reports that the NCL’s stock fell to $11.18 per share on news of the company’s possible bankruptcy.

Norwegian Cruise Line has been in operation since 1966.

In general, the cruise industry is facing mounting challenges as it attempts to navigate the world’s new travel realities. Yesterday Carnival announced that it will resume limited cruising as of August 1, but the company’s plan has yet to be put to the test in light of the realities of the coronavirus pandemic.