Royal Caribbean Cruises Ltd. (RCCL) the world’s second largest cruise shipping group, has reported a deep first quarter loss on an impairment charge and says bookings for 2021 are in historical ranges at this early stage of cycle.
RCCL’s net loss amounted to $1.4 billion, deepened by a $1.1 billion impairment charge, compared to a net income of $249.7 million in the first quarter of last year.
“Given the impact of COVID-19, booking volumes for the remainder of 2020 are meaningfully lower than the same time last year at prices that are down low-single digits. Although still early in the booking cycle, the booked position for 2021 is within historical ranges when compared to same time last year with 2021 prices up mid-single digits compared to 2020,” the company said in a statement.
At the end of April, approximately 45% of the guests booked on cancelled sailings have requested cash refunds. Additionally, as of March 31, 2020, RCCL had $2.4 billion in customer deposits, it said.
"Responding to the dramatic change in business conditions caused by COVID-19 has required focus, dedication, ingenuity and improvisation from all our people, and their efforts have been nonstop," said Richard D. Fain, Chairman and CEO.
"We understand that when our ships return to service, they will be sailing in a changed world. How well we anticipate and solve for this new environment will play a critical role in keeping our guests and crew safe and healthy, as well as position our business and that of our travel agent partners to return to growth."
