Royal Caribbean posts $1.6bn loss as pandemic halts sailings
Royal Caribbean reported a wider than expected loss in the second quarter as the cruise operator suspended its sailings as a result of the coronavirus pandemic.
Royal Caribbean revenues fell to $175.6m down from $2.8bn in the same quarter a year ago, but exceeded Wall Street expectations. The company suspended cruises from March 13 and had no voyages in the second quarter. The Cruise Lines International Association (CLIA), an industry group, has called for members to suspend operations until the end of October.
“The Covid-19 pandemic is posing an unprecedented challenge to our industry and society,” said chief executive Richard Fain.
That pushed Royal Caribbean to a net loss of $1.64bn or $7.83 a share, compared with a profit of $472.8m or $2.25 a share in the same period a year ago. Adjusting for one-time items it reported a loss of $6.13 a share, steeper than analysts’ expectations for a loss of $4.82 a share.
While the bookings for the remainder of the year have been hit by the coronavirus-driven suspension, the company said 2021 is trending well, even though it is early in the cycle.