During its second quarter, the company’s net loss narrowed to $1.35 billion, or $5.29 per share, from a loss of $1.64 billion, or $7.83 per share, a year earlier. The company also said cruise ship bookings grew 50% from the first quarter.
- Loss per share: $5.06 adjusted vs. $4.39 expected
- Revenue: $50.9 million vs. $149.7 million expected
Only a day before, on Tuesday, Royal Caribbean announced that its full fleet will return by next spring through a press release.
“More than 110,000 guests have cruised with us since December, and they’ve done so safely while enjoying the memorable vacations they trust we’ll bring to life,”Michael Bayley, president and CEO of Royal Caribbean International
Ever since Covid-19, Royal Caribbean’s revenues and share prices have fallen significantly. For first-quarter 2021, RCL posted an adjusted loss per share of $4.44, narrower than the Zacks Consensus Estimate of a loss of $4.54. In 2020, the company reported an adjusted loss per share of $1.48 per share in the corresponding period.
During the first quarter of 2021, passenger ticket revenues fell 98.5% year over year to $20.8 million, while onboard and other revenues slumped to $21.2 million from $655.9 million reported in the corresponding-year quarter.
RCL generated revenues of $42 million, beating the analyst estimates of $41 million by 2.4%. In the prior-year quarter (pre-pandemic), the company reported revenues of $2,032.8 million. Beginning March 13, 2020, the company halted all of its global cruise operations resulting in the cancellation of first-quarter sailings. The cancellations have been extended for most of its ships till June 30 this year.
For the fiscal year, Wall Street analysts are expecting a loss of $13.325 per share. In the previous year, RCL earned a profit of $18.310 per share. On average, analysts predict full-year revenue to be $2.40 billion, compared to $ 2.21 billion in the previous year.
RCL plans to reconsolidate its position in the cruise industry with its new port projects. The company announced that it plans to add Silver Dawn to the Silversea fleet during the fourth quarter of 2021. The company also has two ships scheduled for delivery: Wonder of the Seas and Celebrity Beyond.
The company anticipates resuming cruise operations with 65% of its total fleet capacity by 2021 across eight of its nine brands. The company is hoping to increase the capacity to 75% by the end of 2021.
The company’s eight of the nine brands — AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, Princess Cruises, P&O Cruises (UK) and Seabourn plan to resume guest operations on 54 ships to date through the end of 2021.