Carnival Corp. and plc released their third-quarter business update. Carnival’s stocks cruised higher after the release. The cruise provider reported a net loss of $2.8 billion, higher than the $2.1 billion loss in the second quarter. But this loss is less than the company’s last year’s third-quarter loss.
Quarter Three Overview
- For the third quarter of 2021, U.S. GAAP net loss of $2.8 billion with an adjusted net loss of $2.0 billion.
- The quarter ended with $7.8 billion of liquidity. The company believes it to be sufficient to return to full-cruise operations.
- Voyages were cash flow positive, and Carnival expects it to continue.
- As of August 31, 2021, eight of the company’s nine brands have resumed guest operations. This is a part of its gradual return to service.
- Booking volumes for all future cruises were higher in this quarter than booking volumes in the first quarter of 2021
- Total advanced bookings for the second half of 2022 are leading over a very strong 2019.
- Customer deposits increased by $630 million in the third quarter of 2021.
- The net debt also decreased as it completed cumulative debt principal payment extensions of approximately $4.0 billion.
The company’s monthly average cash burn rate for the third quarter was $510 million. As the company starts returning to service, it expects the incurring incremental restart related spend to continue. The cost includes
- returning ships to guest cruise operations,
- returning crew members to its ships, and
- maintaining enhanced health and safety protocols.
Carnival expects a further rise in the average cash burn rate for the fourth quarter.
The Carnival Corp. & plc President and CEO Arnold Donald said they are glad to be back doing what they do the best. Giving memorable vacation experiences for the guests while minding public health interests is the company’s prime goal.