Royal Caribbean announces steps to improve financial situation due to coronavirus
With the ever growing impact of COVID-19 outbreak, Royal Caribbean announced it has increased its revolving credit capacity by $550 million bolstering the company's liquidity.
In addition, Royal Caribbean Cruises Ltd. is looking into other ways to improve its liquidity by reducing capital expenditures, operating expenses and taking other actions to improve liquidity by at least a further $1.7 billion in 2020. The company is also planning reductions to the 2021 capital expenditures and operating expenses.
Liquidity refers to a company's ability to use its current assets to meet its current or short-term liabilities.
The company also said it is withdrawing its first quarter and full-year 2020 guidance, due to the, "magnitude, duration and geographic reach of COVID-19."
"These are extraordinary times and we are taking these steps to manage the company prudently and conservatively," said Richard D. Fain, chairman and CEO. "I am proud of the work our teams are doing to address this unprecedented situation."