Posted on 08/10/2021 2:01:48 PM PDT by Capt. Tom
Carnival Corporation, Royal Caribbean Group and Norwegian Cruise Line Holdings are still burning through cash as some ships emerge from lay up back into operations.
Cash burn numbers may be up in the third quarter with added costs to reactivate ships, needed maintenance, potential drydocks, procurement, getting crew back and more.
Only one out of the three big cruise companies provided estimates on third quarter cash burn, indicating it would be up close to 45 percent.
Carnival Corporation
For Carnival Corporation, the company's cash burn for the first half of 2021 was $500 million per month, which was better than a previous forecast of $550. The improvement was mainly due to the timing of cash received from ship sales just before the end of the second quarter and some other small working capital changes.
With ships quickly relaunching, and a short booking window for cruises announced close to departure, the company said it will not provide a forecast for its third quarter cash burn rate.
Royal Caribbean Group
Royal Caribbean reported its average monthly cash burn rate for the second quarter of 2021 at approximately $330 million, slightly higher than the prior quarter as the company returned additional ships into operation.
Similar to Carnival, Royal Caribbean would is not providing a forecast for the third quarter.
"The environment remains fluid, and for this reason, we are not providing a cash burn estimate or the related offsets generated by revenue and new customer deposits. I will highlight that the burn rate for the ships that are kept at layoff is expected to be consistent with our previous expectations," said Jason Liberty, executive vice president and CFO, on the company's second quarter earnings call.
Norwegian Cruise Line Holdings
Norwegian Cruise Line Holdings said its average cash burn in the second quarter was $200 million per month, higher than its guidance of $190 million driven by the announcement of additional ship relaunches in the company's voyage resumption plan and the associated restart expenses.
"As for the third quarter, we expect our average monthly cash burn rate to increase to approximately $285 million as restart expenses accelerate with additional vessels entering service," said Mark Kempa, executive vice president and CFO. "Restart expenses are primarily related to repositioning, provisioning and stopping of vessels, implementing new health and safety protocols and a measured ramp-up of demand-generating marketing investments."
Can you imagine worrying about Covid outbreaks, the CDC, or ports and countries around the world, screwing up your restart. A very real possibility.
Besides the Cruise Lines; I figure the Creditors who have loaned them Billions are also concerned.
I don't believe the Cruise lines will get back the number of paying cruise passengers they had prior to 2020.
If this Cruise restart gets derailed, expect a reorganization. (a form of bankruptcy) -Tom
I am scheduled for an Alaskan cruise in Sept. I have defered it because I do not want the forced vaccine.
Just mt two cents, but I believe the cruise industry and international tourist travel will not return to anything like before. There’s just too much worry over quarantines and exposures.
Besides, I have no interest in wearing a mask for 12+ hours just to get to Europe. I have a trip to South America scheduled for November and can’t see it being a pleasant experience with masking and the vaccine documents required.
So, I’m seeing the USA in my Chevrolet.
That vaccination factor doesn't bode well for the Cruise Lines in 2021.
Also the future economy in this country doesn't look good to me, because of our wild spending, and enemies like China and Russia who sense blood in the water in the USA, and will make the road ahead rough for us. -Tom.
OTOH, I will not cruise on any voyage that isn’t 100% vaccine required. Nor will I cruise on any voyage that requires a mask.
I booked a cruise September 2019 for September 2020. At this rate that cruise might never happen because of covid.
Everything is on hold and I blame the Chinese, Fauxi, demonRats, RINOs, the deep state, and the media for all of this.
I won’t schedule a cruise until this nonsense is over.
And I LOVE cruising.
So that is the cruise companies dilemma. Some won’t cruise either way they call this. Well hopefully the fog will clear and we see who was right
I don’t want to be anywhere near vaccinated GMO humans either. Have fun surviving the next couple of years! Covid=99.95% survival rate.
And I LOVE cruising.
Even if they throw in a free burial at sea?
“Even if they throw in a free burial at sea?”
Oh wow....that’s tempting!!! :-P
I’m booked on Royal for December. When we booked the jab was not required, it is now. Eight of us are canceling tomorrow.
“OTOH, I will not cruise on any voyage that isn’t 100% vaccine required.”
Obviously, you are trolling since it is well known here on FR that having or not having the vaccine makes no difference to who gets sick or passes on sickness.
“Even if they throw in a free burial at sea?”
DOOD! (DOODETTE?) Nice!
Of course, the recent Carnival Vista sailing from Galveston with 100% crew and passenger vaccinated, AND a Negative WuFlu test within 72 hours of sailing, still had people coming down with the Virus within a few days.
Now Carnival has announced that that masks will be worn at all times, except in your cabin, or actually sitting down and eating.
Your Move.
Right now people are cancelling because of the new mask rules...
Vaccinated passengers are getting the Wu Hu Flu (Gee how did that happen?)but some still insist they wont cruise on ships that re not 100% vaccinated...Alaska is popular right now...
Finally the vaccinated have take a test and prove they are negative to board the ships...I thought it was nuts to only require the unvaccinated to be tested...Its the vaccinated who are going onboard sick or getting sick and spreading it around...
No only the unvaccinated had prior tests...From this Saturday August 14 everyone is requited to have a negative test...
Vaccinated people were boasting online how they were sick and just walked of the ship and went home, some even flying...
But youre right the passengers were mostly all all vaccinated but still got the Wu Hu Flu...
..
chaosagent wrote: “Now Carnival has announced that that masks will be worn at all times, except in your cabin, or actually sitting down and eating. Your Move.”
Which isn’t at all surprising. It’s unrealistic to expect vaccinations to be 100% effective. Vista carries about 4000 passengers plus crew. At a 95% effectivity, one would expect several hundred cases.
The anti-vaxxers like to use examples like this (it’s a stawman argument) to claim that the vaccines won’t protect you, you can still get the virus? Well, so what? No one ever claimed that a previously vaccinated person might become infected. What has been claimed is the vaccines stop about 95% of the infections and diminish the consequences of an infection.
I have two cruises booked. I will cancel if it becomes apparent that masks will be required. I will not book a cruise that doesn’t require 100% vaccinations. To be honest, I care much more about my health than I do about your right to refuse to document your vaccination. That’s another strawman argument since that right does not exist according to legal precedent.
CodeToad wrote: “Obviously, you are trolling since it is well known here on FR that having or not having the vaccine makes no difference to who gets sick or passes on sickness.”
FR isn’t an authoritative source on vaccines or viruses or illnesses.
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