Carnival Corp. reported on Monday a net loss of US$2.9 billion for the third quarter of 2020, with third quarter adjusted net loss of $1.7 billion, Cruise Week reports.
The cruise company, parent company to Carnival Cruise line, Holland America Line, Cunard Line, Seabourn Cruise Line, Princess Cruises and other cruise lines, said cumulative advanced bookings for the second half of 2021 are at the higher end of the historical range, despite minimal advertising or marketing.
Pricing on these bookings are lower by mid-single digits versus the second half of 2019, reflecting the effect of FCC's from previously cancelled cruises being applied, according to CW.
"Our business relies solely on leisure travel which we believe has historically proven to be far more resilient than business travel and cannot be easily replaced with video conferencing and other means of technology," said Carnival Corp. President and CEO, Arnold Donald.
"Our portfolio includes many regional brands which clearly position us well for a staggered return to service in the current environment."
Donald highlighted Costa successfully completing its first seven-day cruise, adding that AIDA will soon resume operations.
Carnival's monthly average cash burn rate for the third quarter 2020 was $770 million. For the fourth quarter, the monthly average cash burn rate is expected to be approximately $530 million.
Reporting that the third quarter ended with $8.2 billion of cash and cash equivalents, Carnival Corp. expects to further enhance future liquidity opportunistically.
Since March, the company has raised nearly $12 billion through a series of financing transactions. Carnival Corp. also disclosed it entered into a $1 billion equity distribution agreement with JP Morgan, Goldman Sachs, Bank of America and other firms.
On the fleet side, a total of 18 less efficient ships have left or are expected to leave the fleet, representing approximately 12% of pre-pause capacity.
The latest ships to leave the fleet are Carnival Cruise Line's Fascination and Imagination. Carnival Corp. announced their sale yesterday, with CLL president Christine Duffy calling it "a necessary move as it allows us to focus on ships that offer the greatest variety of features and stateroom accommodations for our guests."