Royal Caribbean Reports First Quarter Loss

Cruise Week

Royal Caribbean Cruises Ltd. posted an adjusted loss of US$310 million in its first quarter report this morning.

The loss for the quarter is a direct result of the global pandemic on the business, said the cruise giant. The COVID-19 virus forced Royal Caribbean to suspend global cruise operation on 13MAR, 2020, which resulted in the cancellation of 130 sailings during the first quarter.

Here are some key points from the Q1 report:

  • Approximately 45% of the customers booked on cancelled sailings have requested cash refunds as of 30APR. As of 31MAR, the company had US$2.4 billion in customer deposits.
  • On 19MAY, Royal completed its US$3.3 billion senior secured notes offering, improving the company's liquidity position by approximately US$1 billion.
  • Royal Caribbean estimated its cash burn to average in the range of US$250 million to US$275 million a month during a prolonged suspension of operations.

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