Carnival loses $ 2.8 billion but posts strong bookings in 2022 – The Medi Telegraph

Miami – Carnival Corp. still losing money, but he sees a silver lining in stronger bookings for next year. The cruise line said on Friday it had lost $ 2.8 billion in the third quarter, ended August 31. But shares rose after the company said bookings for the second half of next year were above pre-pandemic levels.

Ships sailing are not yet full, but Carnival says passengers are spending more per person than before the pandemic. CEO Arnold Donald says people who haven’t been able to travel for a while are just in the mood to spend more.

Carnival Corp. lost $ 2.8 billion in the third quarter, but shares rose on Friday after the cruise line said bookings for the second half of next year were above 2019 levels. Cruise investors are looking for a glow hope for an industry that has been battered by the pandemic. Still, the short-term outlook remains bleak. Carnival said the increase in COVID-19 cases in the United States due to the delta variant had hurt sales this summer. Rivals Royal Caribbean and Norwegian Cruise Line saw the same. Newly reported virus cases tend to drop slightly now. Carnival said the average ship was only 59% full in August, but that was an improvement from 39% in June, and that the trips generated enough revenue to cover the costs. cash costs. “We reported a significant loss so we haven’t recovered yet, obviously, but looking ahead we see better days,” CEO Arnold Donald said in an interview. “ If things continue to evolve as they are (with the COVID-19 cases), we should see positive cash flow as our fleet sails widely again. Although there were fewer passengers, they spent 20% more on board than before the pandemic, the company said. Donald said there could be several explanations.

People couldn’t navigate – maybe not even travel – for a while, then they’re in the mood to spend more because they haven’t had the opportunity to do so in a while, ”he said. Carnival, headquartered in Miami but incorporated in Panama, said after write-downs its adjusted loss stood at $ 1.99 billion in the third quarter, ended Aug.31. Eight of Carnival’s nine cruise lines, including Carnival, Princess and Holland America, have resumed sailing with reduced schedules. The company said it expects more than half of its fleet to be operational by the end of October and the entire fleet by next summer. The cruise industry has been among the hardest hit by the pandemic. The Big Three cruise lines are incorporated outside of the United States and have not received the same type of federal relief that is given to airlines. With incomes at their lowest, companies borrowed billions to avoid sinking. Carnival shares rose 3% to close at $ 25.44.