Having paused cruise operations in mid-March 2020 due to the coronavirus pandemic, as of end-May 2021, only five of our ships were back up and running with guests onboard.
The FTSE 250-listed cruise operator reported US$23mln passenger ticket revenue for the six months to May 31 a drop in the ocean compared to US$3.68bn a year earlier.
Almost all of that, US$20mln, came in the second quarter – though that was still down 96% from $446mln the year before, leading to a US$2.1bn quarterly loss.
However, the second quarter loss was half that seen a year ago as costs are much lower, especially payroll and ship impairments.
Long-term debt was US$25.97bn, up from US$22.13bn, with US$9.3bn of cash and short-term investments as at May 31.
“We believe that the ongoing effects of COVID-19 on our operations and global bookings have had, and will continue to have, a material negative impact on our financial results and liquidity,” Carnival said.
Management expect a net loss on a reported and adjusted basis for the third quarter of 2021 and the full year to end-November.
Having taken action to improve liquidity, including completing raising funds on the capital markets, cutting capital expenditure and operating expenses, accelerating the removal of some ships, and expecting to pursue other refinancing opportunities to cut interest and extend maturities, the board said it has concluded “we have sufficient liquidity to satisfy our obligations for at least the next twelve months”.
But with the constantly shifting nature of the pandemic, directors admitted “our ability to be predictive is uncertain”.