Carnival preparing for another considerable loss since the coronavirus outbreaks: WSJ

Carnival Corp. said it continues to burn money and expects to record another considerable loss after almost a year since the coronavirus outbreaks on board stopped its travels in the United States

The company reported a preliminary loss of $ 2.22 billion on Monday in the fourth quarter ended November 30, compared with a profit of $ 423 million in the same quarter last year. Adjusted losses were $ 1.9 billion. The company did not release preliminary revenue figures in its press release, but a spokesman said the revenue was in the tens of millions of dollars.

CARNAVAL, NORWAY, REAL CARIBBEAN EXTENSION TO SUSPENSION OF MOST NAVIGAS UNTIL THE END OF FEBRUARY

Carnival’s flagship line stopped all cruises in the United States until the end of March, while Princess Cruises and Holland America Line also canceled some trips this year. Travel time to the U.S. ultimately depends on receiving a license from the U.S. Centers for Disease Control and Prevention, which requires operators to undertake mock travel and apply for a certificate at least 60 days before offering cruises to passengers. .

Carnival Corp. said it continues to burn money and expects to record another considerable loss after almost a year since the coronavirus outbreaks on board stopped its travels in the United States

The company said it expects to sell 19 less efficient ships, which make up about 13% of the pre-break capacity. Carnival said it hoped to sell the ships in the coming years and that 15 of those ships have already left the fleet.

“With the aggressive actions we have taken, managing the balance sheet and reducing capacity, we are well positioned to capitalize on pent-up demand and emerge as a leaner and more efficient company,” said Chief Executive Arnold Donald in a conference call.

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Despite uncertainty about the timing, Carnival aims to resume operations on all ships by the end of the year, Donald said. “I hope that what has happened so far in the beginning of 2021 here is just a hangover from 2020,” he said. The company is awaiting additional guidance from the CDC for specific time on simulated cruises. The CDC expects to publish technical instructions for cruise operators’ agreements with local and port health authorities in the coming weeks, a CDC spokeswoman told The Wall Street Journal.

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