Royal Caribbean joint venture Pullmantur cruise line files for reorganization
Spanish cruise line Pullmantur Cruceros, partially owned by Royal Caribbean Cruises Ltd., has filed for reorganization.
Miami-based Royal Caribbean owns 49% of Madrid-based Pullmantur in a joint venture with Cruises Investment Holdings. The cruise line comprised of three ships — Horizon, Monarch and Sovereign — focuses on Spanish and Latin American customers. The company divested of a fourth ship, the Zenith, in January 2020.
“Despite the great progress the Company made to achieve a turnaround in 2019 and its huge engagement and best efforts of its dedicated employees, the headwinds caused by the pandemic are too strong for Pullmantur to overcome without a reorganization,” said Pullmantur’s board of directors in a statement.
Pullmantur had previously canceled cruises through November 15, 2020, due to the COVID-19 pandemic. Customers who have booked cruises for future dates will be able to rebook on other Royal Caribbean Cruises lines.
Royal Caribbean Cruises reported a $1.4 billion loss, or $6.91 per share, in the first quarter of 2020, a sharp downturn from a profit of $249.7 million, $1.19 per share, during the same period last year. The company said Monday that all of its assets related to the Pullmantur joint venture were included in the non-cash asset impairment charges reported in their first quarter of 2020 results.
According to financial filings, Royal Caribbean had planned to shift one of its Royal Caribbean International ships, the Grandeur of the Seas, to Pullmantur in the second quarter of 2021.
This story was originally published June 22, 2020 at 10:19 AM.
