Yet another small cruise line has shut down in the wake of pandemic struggles

One of America’s most beloved cruise operators, American Queen Voyages, has shut down.

The U.S. river cruise specialist, known for operating the iconic Mississippi River paddlewheeler American Queen, ceased operations on Tuesday, blaming ongoing financial troubles related to the COVID-19 pandemic.

“Despite great efforts by our team, crew and partners, American Queen Voyages (AQV) unfortunately has been unable to rebound from the effects of the pandemic,” the company said in a statement posted on a web page it set up to explain the shutdown.

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“The overnight cruise industry was especially affected by changes in travel preferences and, as a result, AQV has become financially unsustainable,” the company added.

In a letter to employees on Tuesday, the line said their positions would be terminated at 5 p.m. local time at all locations where the company operated, and the action was expected to be permanent.

All sailings on the three riverboats that the company had scheduled to operate this year — American Queen, American Countess and American Duchess — have been canceled.

Cruise lines hurt by the pandemic

American Queen Voyages is just the latest in a string of more than a dozen small cruise operators around the world to shut down since the start of the COVID-19 pandemic in 2020.

The American Queen Voyages shutdown comes just eight months after small-ship rival Vantage Deluxe World Travel collapsed, blaming pandemic-related financial woes.

Other cruise brands that have shut down over the past four years, almost all citing the financial effects of the pandemic, include luxury line Crystal Cruises and its two Asia-based sister brands, Dream Cruises and Star Cruises; Japan-based Venus Cruises; India-based Jalesh Cruises; Swedish-based Birka Cruises; U.S.-based small-ship specialist Blount Small Ship Adventures; and U.K.-based Cruise & Maritime Voyages.

Cruise & Maritime Voyages was the second-largest cruise brand in the U.K. before collapsing in July 2020.

Germany-based FTI Cruises and Spain-based Pullmantur Cruises also ceased operations during the pandemic. Pullmantur, which was partly owned by Royal Caribbean Group, the parent company of Royal Caribbean, was the first cruise company to collapse during the pandemic, just three months after cruise ships stopped sailing in 2020.

Also shutting down in 2021 was Caribbean-focused Sail Windjammer, which operated a historic sailing vessel once owned by the American financier E. F. Hutton and his wife, Marjorie Merriweather Post.

Of all these brands, only one — luxury line Crystal — has been able to restart operations. Crystal resumed operations in July under new owners, the high-end travel company A&K Travel Group.

All major cruise lines around the world paused sailings for many months at the start of the pandemic and only slowly returned to normal operations, resulting in enormous quarterly losses that only recently have begun to moderate. The brands that have stayed in business have been forced to take on massive amounts of debt to survive.

American Queen Voyages promises refunds

In an online statement, American Queen Voyages said customers who had paid for future cruises should expect a full refund through its insurance company, Argo Surety. The refunds will not come from American Queen Voyages, as the brand is filing for Chapter 11 bankruptcy, it said.

The company directed customers to fill out a claim form and submit proof of payments to American Queen Voyages at a new web page that it had set up for the process, aqrefunds.com. The process will be somewhat convoluted, as American Queen Voyages will at first deny the claim due to its bankruptcy filing. That, in turn, will generate a denial letter that customers can use to subsequently file a claim with the insurance company.

In a statement posted online, American Queen Voyages expressed gratitude “for the privilege of serving our guests, partners and agents, and for being part of our incredible local communities” over the years.

“It has been an honor to bring joy to so many lives, and we are deeply touched by the relationships we have formed and the memorable experiences we have created,” the company said. “We sincerely regret any inconvenience this decision causes. Our goal is to ensure a smooth process for all AQV stakeholders.”

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