Postings on social media yesterday showed Carnival Fantasy being beached at a Turkish scrapping yard — a sad ending for a ship that had in many ways been an icon of the early days of the modern cruise industry. She ended up beached alongside the ex-Royal Caribbean ships Sovereign and Monarch that had last been operated by Pullmanturs.
Carnival Cruise Line reported last week that Carnival Fantasy and Carnival Inspiration had been sold, and that Carnival Fascination and Carnival Imagination would move to a long term lay-up status, with no specific timeline identified for a return to operation. That followed a July 9 announcement by parent Carnival Corporation & plc that it planned to remove nine ships from its fleet in the next 90 days.
ANOTHER TWO SHIPS TO BE SHED
Yesterday Carnival Corporation said it had made a decision to remove a further two ships from its fleet. It said that on July 23, senior management of the company evaluated these two ships for impairment and concluded their carrying values are no longer recoverable when compared to their estimated remaining future cash flows.
It added that consequently it expectsto record non-cash impairment charges during the third quarter of 2020.
“Although the actual amount of the charges has not yet been finalized,” said Carnival Corporation, “we expect the aggregate impairment charge to be in the range of $600 million to $650 million. We do not expect these impairments to result in any material future cash expenditures. We plan to continue to evaluate other options to maximize our liquidity and best position our fleet for future operations.”