CARNIVAL Corporation has released its trading results for the three months to 31 Aug, confirming voyages during the period were cash-flow positive, with revenue per passenger day increasing compared to 2019 “despite the current constraints on itinerary offerings, which did not include many of the destination-rich itineraries offered in 2019”....
CARNIVAL Corporation has released its trading results for the three months to 31 Aug, confirming voyages during the period were cash-flow positive, with revenue per passenger day increasing compared to 2019 “despite the current constraints on itinerary offerings, which did not include many of the destination-rich itineraries offered in 2019”.
The company, which has eight of its nine brands now sailing once again (with the outlier being P&O Cruises Australia which is still stymied by Australia’s border ban), said the increase was partly driven by “exceptionally strong onboard and other revenue,” with vessel passenger occupancy building consistently month-to month, from 39% in Jun to 59% in Aug.
However the overall bottom line continued to suffer, with the company reporting a US$2.8 billion net loss for the quarter.
Chief Executive Officer Arnold Donald said “we are very glad to be back doing what we do best, delivering memorable vacation experiences for our guests, while doing so in a way that best serves the interests of public health”.
“It is difficult to demonstrate just how successful our restart effort has been because many cruises, while generating positive cash flow, were limited to scenic cruises without ports of call, and generally priced well below the attractive destination rich cruises we normally offer,” Donald said.
While its cruises generated cash, Carnival continues to incur heavy cash burn rates as it spends money to restart sailings, finance debt and bring crew onboard.
“Being the largest in the industry, it is not surprising that we are now successfully operating at a larger scale than anyone else in the industry,” Donald said.
“Our protocols have been working well and are enabling us to build occupancy levels as we return more ships to service.
“Looking forward, we continue to work towards resuming full guest cruise operations by next [northern hemisphere] spring, in time for our important summer season, where we make the bulk of our operating profit”.
Future bookings are strong despite reduced marketing spending, with Donald noting the broader environment for travel had improved dramatically.
The current trend of vaccine rollouts and advancements in therapies should further drive confidence, with Carnival opening bookings with longer lead times through to 2023, with “unprecedented early demand”.
