Royal Caribbean Cruises has expanded its revolving-credit facility.
As Coronavirus crisis dampens near-term prospects of the travel industry (among other sectors of the economy), Royal Caribbean’s $550 million increase of credit capacity potentially allows it to have more liquidity buffer against challenging times.
The cruise line company is also hoping to boost liquidity by at least an additional $1.7 billion in 2020, by lowering expenses.
Royal Caribbean also said it was planning to reduce its 2021 capital expenditures and operating expenses. Chairman and CEO Richard D. Fain said that the company is trying to manage the situation “prudently and conservatively”.