Royal Caribbean Loses $ 1.6 Billion in Second Quarter Due to Covid | Business

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Royal Caribbean Group reported a net loss of $ 1.6 billion (£ 1.2 billion) for the second quarter of the year, after the coronavirus pandemic caused the cruise line to cancel all crossed during this period.The group, which operates brands such as Royal Caribbean and Celebrity Cruises, made a net profit of $ 473 million during the same period in 2019.

The company, which suspended all travel around the world on March 13, said the Covid-19 pandemic posed an “unprecedented challenge” to the cruise industry.

Royal Caribbean burns between $ 250 million and $ 290 million in cash per month while its ships do not sail, due to ongoing costs, including operating and administrative costs, and commitments to build new ships.

The company is looking for ways to cut spending in case it takes longer to restart cruises, and said it has taken “substantial steps” to strengthen its financial position, including increasing new secured debt on certain of its ships.

The group, which removed “Cruise” from its corporate name in July, wishes to resume certain operations in early November.

Royal Caribbean is using the current period to make its operations more efficient, said managing director Richard D Fain.

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“Our teams are working tirelessly to get back to service as quickly as possible, by developing new health and safety protocols to protect the well-being of our guests, our crew and the destinations we visit,” said Fain.

Royal Caribbean said bookings for the remainder of 2020 were “significantly lower” compared to 2019, although bookings for 2021 were going in the right direction.

He tried to encourage customers to move their cruise to the same ship the following year, rather than refunding them, although about 48% of passengers who booked canceled trips requested their refund.

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