Carnival Loses $4.4B As Cruise Industry Sank In Q2

Carnival Corp. posted a $4.4 billion loss in the second quarter as the cruise industry was docked due to COVD-19, the company reported Thursday (June 18).

Revenues fell 85 percent to $700 million from $4.8 billion for the same quarter last year. Analysts had forecast losses would be about $738 million.

“In the face of the impact of the COVID-19 global pandemic, the company paused its guest cruise operations in mid-March,” the company said in its filing with the Securities and Exchange Commission. “In response to this unprecedented situation, the company acted to ensure the health and safety of guests and shipboard team members, optimize the pause in guest operations and maximize its liquidity position.”

Carnival’s Q2 results showed an adjusted net loss of $2.4 billion.

“The pause in guest operations is continuing to have material negative impacts on all aspects of the company’s business,” Carnival said. “The longer the pause in guest operations continues the greater the impact on the company’s liquidity and financial position.”

The company expects a net loss for the second half of 2020.

Carnival said it expects to resume cruises in a phased manner after consulting with government and health authorities.

Last week, PYMNTS reported while most sectors have seen fallout from the coronavirus, the cruise industry has been hit especially hard. Cruise ships saw several early COVID-19 outbreaks and many travelers were stuck in their staterooms.

It raises the question of when the ships will sail.

A PYMNTS survey found while respondents want to travel, it’s not a priority. Only 20 percent named international travel as one of the things consumers will do when the travel economy reopens. That number rises to 26.2 percent  among respondents who have been working from home.

“With many differing restrictions across countries, people’s ability to move freely and safely across borders remains seemingly some way in the distance,” Simon Palethorpe, president of Cunard, said in a statement. “We also need to better understand the implications Covid-19 will have on board our ships.”