Friday, May 8, 2020
Walt Disney CEO Bob Chapek said in a statement on the company’s second-quarter earnings call that he is confident about the future of the Disney Cruise Line and believes that it would make a return after the coronavirus pandemic is over. However, he also admitted that cruises may be among the company’s last businesses to return back in action.
It was around April that Disney Cruise Lines announced its decision to extend the suspension of its cruise operations. It was also mentioned that the company is canceling all new departures until April 28 and has further continued the suspension to maintain the safety and security of guests as well as crew members. Disney Cruise Line operates four ships: the Magic, Wonder, Dream, and Fantasy.
Bob Chapek officially announced that the cruise ship business is likely to be the last of Disney’s travel-oriented businesses to come back online. He informed that the company’s long term data and research shows that guests will be interested in cruising with the company in the long term. He mentioned that even though demand for cruise sailings might not increase in the next few months, it is much more resilient than any of the competitive businesses because of people’s love for Disney.
He added that guests trust the company’s business and are assured that Disney will act in a responsible way to help protect them against some of the woes that have plagued the industry since COVID-19 outbreak in every possible way. The company also had three new ships on order for introductions in 2021, 2022 and 2023.
According to an SEC filing, the entertainment giant is also anticipating delays to its new-build schedule. Disney stated in a recent statement that the company has credit facilities to finance three new cruise ships, which were to be delivered in 2021, 2022, and 2023. However, as a result of the COVID-19 impact on the shipyard, delays in the schedule of all new productions can be expected.
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