Cruise rivals Royal Caribbean Cruises Ltd. (NYSE: RCL) and Norwegian Cruise Line Holdings Ltd., (NYSE: NCLH) are said to be burning cash in the range of $450-470 million and $140-150 million per month respectively.
"Although we had hoped that cruise activity could resume as soon as possible after that date, it is increasingly clear that more time will be needed to resolve barriers to resumption in the United States", the association said in a statement.
As a result of the CLIA announcement, Carnival Cruise Line Ambassador John Heald posted on social media stating that the cruise line was aware of the announcement just made by the CLIA and would be providing an update on Monday, June 22.
The CLIA said the suspension applies to all cruise lines subject to the CDC's current "No Sail" order, which is set to expire on July 24.
The members opted for the mid-September halt to U.S. sailings to allow for more consultation with the CDC, according to the statement.
Cruise titan Carnival Corportation reported a second-quarter loss of $4.4 billion (Dh16.2bn) including $2bn in impairment charges, and warned that it is unable predict when it will be able to resume operations given the lingering coronavirus shutdown.
As the CCP (Chinese Communist Party) virus crisis wreaked havoc on the travel industry in April and May, and on cruise operators in particular, cruise lines were forced to adopt extreme measures to ensure the safety of passengers and crew.
Carnival, which in recent weeks had fully drawn down a US$3-billion credit line and issued US$6.6-billion in bonds and equity, said it was looking for further waivers on debt repayments that are due next year, without which it could breach certain loan conditions.
Holland America Line has become the latest cruise company to extend the pause in its operations.
As of May, the company had $7.6 billion of liquidity.
Carnival Corporation, which operates Carnival Cruise Line, has cancelled cruises until to August 31, with a few exceptions.
The company also announced on the same working day that L Catterton, a private equity fund, invested $400 million in NCL Corp., a subsidiary of Norwegian.
The company's shares fell 1.4 percent on Thursday as it revealed a roughly US$2-billion loss attributed to the difference in the sale price of the ships and their previously booked value.