Royal Caribbean Cruises Limited experienced a net loss of $1.4 billion, or $6.91 per share, for the first quarter of the financial year. The figure compares to a profit of $250 million, or $1.19 per share, in the same quarter last year.
The cruise company saw revenue fall 17% to $2.03 billion over the period. Royal Caribbean suffered a non-cash asset impairment loss of $1.1 billion due to Covid-19. It has withdrawn its guidance for 2020 as well as the second quarter, but said it expects to incur a loss on both timescales, “the extent of which will depend on the timing and extent of our return to service”.
The company is expected to lose millions per month
Known as the second-largest cruise company in the world, it also owns the Celebrity Cruises and Azamara brands. It is expected to lose $250 to $275 million per month during its extended suspension, more than 60% of which is operating costs.
The company said that the levels of bookings are “meaningfully lower” than last year’s, despite low single-digit prices. Its position for 2021 is “within historical ranges”. Royal Caribbean will also extend the suspension of most sailings across its cruise brands until July 31st. Sailings from China (which will be suspended through the end of June) are an exception.