{"id":403,"date":"2021-02-23T21:09:58","date_gmt":"2021-02-23T21:09:58","guid":{"rendered":"https:\/\/deluxecruises.com\/deals\/?p=403"},"modified":"2021-02-23T21:09:58","modified_gmt":"2021-02-23T21:09:58","slug":"royal-caribbean-group-posts-5-8-billion-2020-loss-bookings-are-solid","status":"publish","type":"post","link":"https:\/\/deluxecruises.com\/deals\/2021\/02\/23\/royal-caribbean-group-posts-5-8-billion-2020-loss-bookings-are-solid\/","title":{"rendered":"Royal Caribbean Group Posts $5.8 Billion 2020 Loss; Bookings Are Solid"},"content":{"rendered":"

The cruise industry\u2019s financial losses during this pandemic era\u2014given the few, if any, sailings\u2014are staggering. That was made clear Monday as\u00a0Royal Caribbean Group<\/strong>\u00a0reported a net loss of $5.8 billion (or $27.05 per share) for full year 2020, compared with net income of $1.9 billion (or\u00a0$8.95 per share) for 2019.<\/p>\n

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The world\u2019s second largest cruise company\u2014parent of\u00a0Royal Caribbean International, Celebrity Cruises,<\/strong>\u00a0Azamara<\/strong>\u00a0(being sold this quarter) and\u00a0Silversea Cruises<\/strong>\u2014also reported a net loss of $1.4 billion\u00a0for fourth quarter 2020, versus net income of $273.1 million in Q4\u00a02020.<\/p>\n

As part of the global containment effort resulting from the\u00a0COVID-19<\/strong>\u00a0pandemic, Royal Caribbean Group\u2019s brands implemented a voluntary suspension of cruise operations starting March 13, 2020. That\u2019s been extended for most ships through at least April 30, 2021.<\/p>\n

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<\/div>\n<\/div>\n
\"Richard<\/div>\n

Richard Fain<\/strong>, chairman and CEO, Royal Caribbean Group (shown in photo at right) said in the report: “The COVID-19 pandemic is having a painful and profound impact on our world and our business; unquestionably, this crisis is the most difficult in the company’s history. But we have been impressed and grateful for the resourcefulness and agility of our team in responding to these unprecedented challenges.\u201d<\/p>\n

He continued: \u201cMore importantly, we remain confident about the ability of our company to recover and return to the positive trajectory we were on previously. We are encouraged to see the sharp decline in cases and the growing availability of vaccines. We can’t wait to get back to the business of showing people the world and making great memories.”<\/p>\n

Jason Liberty<\/strong>, executive vice president and CFO, added, “These results reflect the staggering impact that the pandemic brought to our company and the whole industry during 2020. I want to thank all our teams who have risen to the occasion, managing through the toughest year in Royal Caribbean’s history.”<\/p>\n

With a monthly \u201ccash burn\u201d averaging $250 million to $290 million, and because voyages are suspended\u2014for the most part\u2014globally, Royal Caribbean Group has taken aggressive actions to enhance its liquidity through cost and capital reductions, cash preservation measures and by obtaining additional financing.<\/p>\n

As of December 31, 2020, the company had liquidity of approximately $4.4 billion. During 2020, the company raised approximately $9.3 billion of new capital through a combination of bond issuances, common stock public offerings and other loan facilities. In December 2020, for example, it completed a $1 billion “at-the-market” equity offering<\/p>\n

Booking Update<\/strong><\/h2>\n

Awaiting the cruise restart is Celebrity Cruises’ Celebrity Edge \/\/ Photo by Celebrity Cruises<\/em><\/p>\n

Booking activity for the second half of 2021 is aligned with the company’s anticipated resumption of cruising, the company said in its financial release, noting that \u201cpricing on these bookings is higher than 2019 both including and excluding the dilutive impact of future cruise credits (FCCs).\u201d<\/p>\n

While the brands are still in the process of opening for sale the remainder of their 2022-2023 seasons, first and second quarter 2022 sailings have been open for some time. \u201cCumulative advance bookings for the first half of 2022 are within historical ranges and at higher prices,\u201d the company reported. This was achieved with minimal sales and marketing spend, indicating \u201ca strong long-term demand for cruising.\u201d<\/p>\n

Approximately 75 percent of bookings made for 2021 are new and 25 percent are due to the redemption of FCCs and the “Lift & Shift” program.<\/p>\n

As of December 31,2020, the Company had $1.8 billion in customer deposits of which 50 percent are related to FCCs. Since the suspension of operations, approximately 53 percent of guests booked on cancelled sailings have requested cash refunds.<\/p>\n

Health and\u00a0Safety<\/strong><\/h2>\n

Royal Caribbean Group said it\u2019s continuing to work and collaborate with the\u00a0Healthy Sail Panel<\/strong>, epidemiologists, health authorities and various governments around the globe to ensure a healthy and safe return to cruising for guests, crew and the communities visited. \u201cWhile the situation remains highly fluid, knowledge of the virus and how it spreads continues to improve,\u201d the line said.<\/p>\n

The company has already begun some limited cruise operations. For example, in December,\u00a0Quantum of the Seas<\/strong><\/em>\u00a0began operating from\u00a0Singapore.<\/strong>\u00a0The company\u2019s\u00a0TUI Cruises<\/strong>\u00a0affiliate, which sources European guests, has operated three vessels in the\u00a0Canary Islands<\/strong>\u00a0since November.<\/p>\n

“Guests are sharing very positive reviews and we are also seeing a higher proportion of first-time cruisers than expected,\u201d Fain said. \u201cWe believe that these cruises, even before the availability of vaccines, are helping us learn and demonstrate to others how we can operate successfully under the current COVID-19 environment.\u201d<\/p>\n

Royal Caribbean Group also said it \u201ccontinues to prepare and develop its plan to meet the “Framework for Conditional Sailing”<\/strong>\u00a0Order\u00a0issued by the\u00a0U.S. Centers for Disease Control and Prevention\u00a0<\/strong>(CDC) for U.S. sailings.\u201d The company noted that while the framework represents an important step to return to service, \u201cmany uncertainties remain as to the specifics, timing, and cost of implementing its requirements.\u201d<\/p>\n

Overall, and due to the challenges posed by the pandemic, Royal Caribbean Group expects to restart its global cruise operation in a phased manner with the initial cruises having reduced guest occupancy, modified itineraries and enhanced health and safety protocols.<\/p>\n","protected":false},"excerpt":{"rendered":"

The cruise industry\u2019s financial losses during this pandemic era\u2014given the few, if any, sailings\u2014are staggering. That was made clear Monday as\u00a0Royal Caribbean Group\u00a0reported a net loss of $5.8 billion (or $27.05 per share) for full year 2020, compared with net income of $1.9 billion (or\u00a0$8.95 per share) for 2019. The world\u2019s second largest cruise company\u2014parent […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-403","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/deluxecruises.com\/deals\/wp-json\/wp\/v2\/posts\/403","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/deluxecruises.com\/deals\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/deluxecruises.com\/deals\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/deluxecruises.com\/deals\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/deluxecruises.com\/deals\/wp-json\/wp\/v2\/comments?post=403"}],"version-history":[{"count":1,"href":"https:\/\/deluxecruises.com\/deals\/wp-json\/wp\/v2\/posts\/403\/revisions"}],"predecessor-version":[{"id":404,"href":"https:\/\/deluxecruises.com\/deals\/wp-json\/wp\/v2\/posts\/403\/revisions\/404"}],"wp:attachment":[{"href":"https:\/\/deluxecruises.com\/deals\/wp-json\/wp\/v2\/media?parent=403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/deluxecruises.com\/deals\/wp-json\/wp\/v2\/categories?post=403"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/deluxecruises.com\/deals\/wp-json\/wp\/v2\/tags?post=403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}