Carnival loses $ 2.8 billion as Delta variant hits summer cruise sales

  • Carnival Corp recorded a loss of $ 2.8 billion in the third quarter of this year, AP reported.
  • The company said sales were reduced this summer due to the impact of the Delta variant of COVID-19.
  • Shares rose on Friday, however, after the company expects growing demand for next year.

Carnival Corp, the world’s largest cruise line, posted a loss of $ 2.8 billion in the third quarter of this year as concerns over the Delta variant of COVID-19 impacted sales.

Associated Press reported those shares rose 3% on Friday, however, after the cruise line said bookings for the second half of next year were above 2019 levels.

The average ship was only 59% full in August, Carnival told AP. This is an improvement from 39% in June.

The cruise industry has been one of the hardest hit sectors following the huge disruption caused by the pandemic. Former and current cruise employees recently told Insider how they have to deal with loneliness, fear and uncertainty while being stuck in mandatory quarantines.

AP reported that the three major cruise lines in the United States had not received the same type of federal relief that was given to airlines.

But the future of Carnival seems more secure, thanks to pent-up demand for cruises. In July, he said early bookings for 2022 were already higher than in 2019, Insider’s Grace Dean reported.

“We reported a significant loss so we haven’t recovered yet, obviously, but looking ahead we see better days,” Arnold Donald, CEO of Carnival, told AP. “If things continue to evolve the way they are (with the COVID-19 cases), we should see positive cash flow as our fleet sails widely again. “

People also spend a lot of money on board. The company told AP that while there were fewer passengers on board this summer, they spent 20% more on board than before the pandemic.

According to Donald, the fact that people were not able to cruise or travel at all could be the reason for the increase in spending. “So they’re in the mood to spend more because they haven’t had the opportunity to do so in a while,” he said.

Eight of Carnival’s nine cruise lines have resumed sailing with reduced schedules, AP reported. The company said it expects its full fleet to be operational by spring 2022.