• Containment efforts have clearly had a severe impact on the sector. Many firms have moved to cut operating expenses, which have come mostly in the form of employee furloughs, reduction in annual capital expenditures and cuts in dividends. Many have also drawn down their corporate revolvers for near-term liquidity.
  • Cruise lines have taken the biggest hit from containment measures and some fairly negative publicity. The entire cruise industry announced a month-long suspension of sailings in March that is expected to be extended through June.
  • Outlook is currently negative for the vast majority of companies in the sector and expected to remain so until the duration of the virus and impact on the economy is better understood.