Carnival Reports $1.9 Billon Quarterly Loss

Carnival Mardi Gras

(Alliance News) - Carnival PLC on Monday said it expects to post a swing to loss for its fourth financial quarter, though experiences a slightly better cash burn rate than expected.

The world's largest cruise company's shares fell 2 per cent to $20.04 in morning trading, after plummeting almost 60 per cent over the a year ago as the health crisis hammered holiday tourism demand across the globe.

The company said it expects to report a net loss of $2.2 billion for the quarter ended November 30, compared with the FactSet loss consensus of $1.59 billion.

In addition, the company said it had accelerated the removal of 19 less efficient ships, 15 that have already left the fleet. In total, the 19 ships represent approximately 13 percent of pre-pause capacity and only three percent of operating income in 2019, the company's last normal operational year. The company recently took delivery of two new ships and expects to receive one more in 2021.

Passengers disembark from the Carnival Sunshine cruise ship Monday, March 16, 2020, in Charleston, S.C. Carnival Corp. said Monday, Jan. 11, 2021 its 2022 cruise bookings are running ahead of 2019 numbers, a good sign that guests will return once the pandemic has eased. The company said it ended its 2020 fiscal year with $9.5 billion in cash.

"The company believes the continued build in cumulative advanced bookings for this twelve month period ending May 2022 demonstrates the long-term demand for cruising". According to President and CEO Donald Arnold, bookings are projected to be ahead of 2019 numbers.

Carnival's Costa brand, which operates in Italy, is scheduled to restart operations on January 31.

"We are now working diligently towards resuming operations in Asia, Australia, the United Kingdom and the USA over the course of 2021", he said.

Carnival, which earlier this month extended its pause on USA cruise operations until March 31, said it ended the fiscal year with $9.5 billion in cash and has the liquidity to sustain itself through 2021, even in a zero-revenue environment. The suspension of tourism operations, including its financial status and operational performance, continues to have a negative effect on the group. "The company expects a net loss on both a U.S. GAAP and adjusted basis for the first quarter and full year ending November 30, 2021".

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