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Carnival preparation for another significant loss after coronavirus outbreaks: WSJ



Carnival Corp. says it continues to burn money and expects to report another significant loss nearly a year after coronavirus outbreaks halted travel to the United States

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CCL CARNIVAL CORP. 20.1
4
-0.33 -1.61%

On Monday, the company reported a preliminary loss of $ 2.22 billion for the fourth quarter ended Nov. 30, compared to a profit of $ 423 million for the comparable quarter a year earlier. Adjusted losses are $ 1.9 billion. The company did not disclose preliminary revenue data in its press release, but a spokesman said revenue was in the tens of millions of dollars.

CARNIVAL, NORWAY, ROYAL CARIBBEANS EXTEND STOPMING MOST SAILS THROUGH END OF FEBRUARY

Carnival’s flagship line paused all American cruises until the end of March, while Princess Cruises and Holland America Line also canceled some trips this year. American travel time ultimately depends on permission from the US Centers for Disease Control and Prevention, which requires operators to make fake voyages and apply for a certificate at least 60 days before offering cruises to passengers.

Carnival Corp. says it continues to burn money and expects to report another significant loss nearly a year after coronavirus outbreaks halted travel to the United States

The company said it expects to sell 19 less efficient ships, representing approximately 13% of pre-break capacity. Carnival said it had previously expected to sell the ships in the coming years and that 15 of those ships had already left the fleet.

“With the aggressive actions we have taken, managing the balance sheet and reducing capacity, we are in a good position to take advantage of the lingering demand and become a weaker, more efficient company,” said CEO Arnold Donald during Conference Call.

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

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