Royal Caribbean Cruises Limited has reported a net loss of $1.4 billion, or $6.91 per share, for the first quarter of the financial year; as the second-largest cruise company, furthers extend the suspension of most sailings across its cruise brands through to July 31st.
Royal Caribbean Cruises Limited — who is also the owner of the Celebrity Cruises and Azamara brands — narrates that this figure is compared to a profit of $250 million, or $1.19 per share, in the same quarter last year.
Royal Caribbean sustained a non-cash asset impairment loss of $1.1 billion, which it said was entirely due to Covid-19. Also, The second-largest cruise company in the world saw revenue fall 17 percent to $2.03 billion over the period.
It has withdrawn its guidance for 2020 as well as the second quarter, but explains that it expects to incur a loss on both timescales, “the extent of which will depend on the timing and extent of our return to service”.
According to the report, The cruise line further noted that it’s expecting a cash burn of $25percent to 275 million per month during its prolonged suspension, which is more than 60 percent of its operating costs.
Regarding forward bookings, the company clarifies that there levels for the remainder of 2020 are “meaningfully lower” compared to the same period last year despite low single-digit prices.
Its position for 2021 is “within historical ranges”.
“It would extend the suspension of most sailings across its cruise brands through to July 31st.
This is with the exception of sailings from China, which will be suspended through the end of June,” Royal Caribbean said in a statement.