Publications
Publications
- January 2021 (Revised February 2021)
- HBS Case Collection
Carnival Corporation: Cruising Through COVID-19
By: Stuart C. Gilson and Sarah Abbott
Abstract
In March 2020, in response to the global pandemic, the cruise industry ceased operations. Carnival was the largest cruise line operator in the world, and CEO Arnold Donald and his management team worked to position the company to survive. They slashed operating expenses and capital expenditures, raised more than $10 billion in new debt and equity financing, and negotiated with creditors. Planned ship deliveries were cancelled, and less efficient ships were retired or sold. Had the company done enough?
Keywords
Debt Issuance; Equity Issuances; Convertible Debt; Cruise Lines; Restructuring; Capital; Crisis Management; Cash Flow; Health Pandemics; Borrowing and Debt; Travel Industry; United States
Citation
Gilson, Stuart C., and Sarah Abbott. "Carnival Corporation: Cruising Through COVID-19." Harvard Business School Case 221-028, January 2021. (Revised February 2021.)