It’s no secret that cruise lines have been hit hard by the pandemic. But $8 billion is still a startling figure.
Carnival Corporation, which includes Holland America, Carnival Cruises, Princess Cruises, Cunard, Seabourn, and Costa Cruises, is reporting a $2 billion (all figures USD) loss for the fourth quarter of 2021. Open Jaw reports the company’s loss for the year is nearly $8 billion.
Still, Carnival President and CEO Arnold Donald says he sees sunnier days ahead for the second half of next year.
“Our cash from operations turned positive in the month of November, and we expect consistently positive cash flow beginning in the second quarter of 2022 as additional ships resume guest cruise operations,” Donald said.
Occupancy in the fourth quarter of 2021 was 58%, which was better than the 54% in the third quarter of 2021, according to Cruise Industry News.
“Booking volumes continue to build for the remainder of 2022 and well into 2023 and we are achieving those early bookings with strong demand and pricing,” Donald said. “Cumulative advanced bookings for the second half of 2022 and first half of 2023 are at the higher end of historical ranges and at higher prices, with or without FCCs (Future Cruise Credits), normalized for bundled packages, as compared to 2019 sailings.”
Fortune reports Carnival Corp. lost $10.2 billion in 2020.
Cruise lines were getting quite busy in the latter half of 2021. It remains to be see how the industry will be affected by the rampant Omicron variant, but sales will no doubt be tricky in the next couple months.
Royal Caribbean Group this week said 48 of 6,091 guests on its Symphony of the Seas cruise ship tested positive for COVID-19.
