I have a question regarding the ability of those companies to survive the next 2 years assuming their cash from operation (CFO) will be very anemic.
I have checked both Royal and Carnival cruise recent annual reports. both of them will need to borrow more next year assuming CFO will cut by 50%.both of them most probably will cut dividends dramatically and will buy fewer shares back. on top of that, both will most likely reduce their capital expenditures (CAPEX).
so they are about to take similar action to survive next year, but until now I see only Royal Caribbean reacts by approaching to increase their line of credit in case of need and announcing they will reduce their CAPEX and operating expenses next year.
the question is, why people talk about Royal cruise as a company that might bankrupt but nobody says the same about Carnival cruise?
thnx.