Cruise

Royal Caribbean posts $2.3 billion quarterly loss, but 2021 bookings “trending well”

Huntley Mitchell

Huntley Mitchell

With its global cruise operations having been suspended since 13 March, it’s not at all surprising that Royal Caribbean Group experienced a bad second quarter financially.

The company reported a US$1.6 billion ($2.3 billion) loss in the three months to 30 June 2020, compared to a US$472.8 million ($664 million) profit in the same period a year earlier.

This year’s second-quarter results included a non-cash asset impairment loss of US$156.5 million ($219.8 million).

Royal Caribbean’s overall revenue fell 93.7 per cent to US$175.6 million ($246.6 million) in Q2.

The company expects to burn between US$250 ($351.1 million) million and US$290 million ($407.3 million) in cash per month during a prolonged suspension of operations, and had roughly US$4.1 billion ($5.8 billion) worth of liquidity as of 30 June.

Royal Caribbean noted the extended suspension of cruising has significantly impacted bookings for the remainder of 2020, which are “meaningfully lower than same time last year and at lower prices”.

The group announced last week that it would extend the suspension of sailings to include those departing on or before 31 October 2020, excluding sailings from China and Australia.

Although still early in the booking cycle, Royal Caribbean said its booked position for 2021 was “trending well” and within historical ranges.

For the booking period since the company’s last business update, approximately 60 per cent of the 2021 bookings are new and the rest are due to the redemption of future cruise credits and its ‘Lift & Shift’ program.

“Pricing for 2021 bookings is relatively flat year-over-year when including the negative yield impact of bookings made with future cruise credits; it is slightly up year-over-year when excluding them,” Royal Caribbean said.

As of 30 June 2020, the company had US$1.8 billion ($2.5 billion) in customer deposits, of which approximately $300 million ($421.3 million) correspond to fourth quarter sailings.

Royal Caribbean said that approximately 48 per cent of the guests booked on cancelled sailings have requested cash refunds.

“The COVID-19 pandemic is posing an unprecedented challenge to our industry and society,” Royal Caribbean chairman and CEO Richard Fain said.

“Our teams are working tirelessly to return to service soonest and doing so by developing new health and safety protocols to protect the well-being of our guests, crew and destinations we visit.

“In the meantime, we are using this time to refine our operations to be as efficient as we can while providing the great experiences that so many people are eagerly awaiting.”


Featured image source: iStock/mcarbo82



SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Wholesalers

Virtuoso uncovers key differences in how each generation travels

Meanwhile, Travel Weekly staff are conducting our own research to tap into the zoomer market by teaching the office dog TikTok dances. It’s not going well.

Share

CommentComments

Cruise

Royal Caribbean Group completes its comeback with all ships back at sea

To honour the milestone, all 63 ships in the group’s fleet sounded their horns at once, which most likely scared the sh*t out of nearby fishing boats and unsuspecting wales across the world.

Share

CommentComments

Travel Agents

Virgin teams up with Flight Centre for money-can’t-buy workshop

It’s the second time a Flight Centre partnership has come up this week and it’s only Tuesday! Skroo must be feeling extra convivial this week.

Share

CommentComments

Aviation

“It’s more like a bribe”: Unions slam Qantas’ $5,000 ‘thank you’ payment

Speaking of bribes, if anyone would like to bribe us with an all-expenses-paid trip to Japan we promise to give you a good review on TripAdvisor.

Share

CommentComments

Destinations

Solomon Islands to reduce mandatory quarantine

Good news for those looking to travel across the Pacific Islands! Not so good news for those who enjoy being confined to a hotel room for days on end.

Share

CommentComments

Hotels

Oakwood solidifies Aussie presence with full opening of Melbourne luxury property

Looking to treat yourself? Don’t get a chocolate at the shops, book yourself a stay at the new Oakwood property in Melbourne (or do both)!

Share

CommentComments

Aviation

Flight Centre signs landmark agreement with Rex as pilots prepare for industrial action

While seemingly struggling to win popularity among its pilots, the regional carrier has turned to its agency partners for reassurance.

Share

CommentComments

Cruise

Princess reveals The Real Love Boat crew, celebrates ‘Top Gun Agents’

Say a prayer for the poor souls tasked with wrangling a ship full of reality dating contestants hell-bent on getting frisky at sea.

Share

CommentComments

Destinations

How your clients can skip the rebound chaos with South America

Got clients keen to travel but hoping to avoid inflated prices and hoards of European Summer revellers? We’ve got the answer for you.

Share

CommentComments

Destinations

Events

Top 12 unmissable events for Italian summer trips

Summer in Italy means sunshine, gelato, promenading after dinner, Aperols overlooking the ocean, hiking, cycling…and a jam-packed events calendar.

Share

CommentComments

Aviation

Airport queues return in anticipation of the school holidays

If you were looking for a good chance to relisten to Led Zeppelin’s entire discography but can’t find the time, we recommend booking a flight to literally anywhere from Sydney or Melbourne airport this month.

Share

CommentComments

Destinations

Queensland government mulls tourism tax

In response to this, the NSW government will be introducing an ice-cream tax, which has infuriated primary school kids across the state.

Share

CommentComments