Carnival Corporation has announced that it will borrow $3 billion under a credit agreement for six months as the coronavirus crisis has resulted in cruise lines suspending their operations globally.

This loan will enable Carnival Corp to “increase its cash position and preserve financial flexibility in light of current uncertainty in the global markets resulting from the Covid-19 outbreak,” with the proceeds being used  “for working capital, general corporate or other purposes”, it said.

The decision came as the corporation’s cruise brands, including Princess Cruises, Cunard and P&O Cruises, announced that they would be halting their operations.

While the corporation says that it is unable to provide an earnings forecast, it does predict results of operations for the fiscal year ending 30 November to result in a net loss.

Carnival Corporation said: “Due to the spread and recent developments, including growing port restrictions around the world, related to the Covid-19 outbreak, the Corporation previously announced a voluntary and temporary pause of its fleet cruise operations by its continental Europe and North American brands.

“Subsequently, the Corporation implemented a temporary pause of its global fleet cruise operations across all brands.

“Each brand has separately announced the duration of its pause. Significant events affecting travel, including Covid-19, typically have an impact on booking patterns, with the full extent of the impact generally determined by the length of time the event influences travel decisions.

“The Corporation believes the ongoing effects of Covid-19 on its operations and global bookings will have a material negative impact on its financial results and liquidity.

“The Corporation is taking additional actions to improve its liquidity, including capital expenditure and expense reductions, and pursuing additional financing.

“Given the uncertainly of the situation, the Corporation is currently unable to provide an earnings forecast, however, we expect results of operations for the fiscal year ending November 30, 2020 to result in a net loss.”

Last month, Carnival Corporation stated that it believed the impact on bookings will result in a drop in its 2020 results and share prices by up to $0.55 a share.