Royal Caribbean’s enormous loss highlights cruise industry woes

Royal Caribbean’s enormous loss highlights cruise industry woes

Royal Caribbean Group’s newly-released Q2 2020 results show the second quarter net loss of $1.6 billion comes on top of a net loss of $1.4 billion in the first quarter of 2020.

According to the industry analysts, these kind of losses are clearly not sustainable and highlight the enormous financial pressure that COVID-19 has put all cruise companies under.

Fortunately for Royal Caribbean, the company has large cash reserves to fall back on, with $4.1 billion still available in the form of cash and cash equivalents. This cash will likely see Royal Caribbean through the pandemic, however, the future may look bleaker for smaller cruise operators with lower cash reserves.

“Despite the ongoing difficulties, Royal Caribbean has indicated bookings have been positive in 2021, with approximately 60% of bookings being new reservations. However, a recent outbreak on board a cruise ship in the Arctic could have enormous repercussions for the cruise industry further down the line. If these kind of incidents become high-profile, it could be devastating for the industry.

#rebuildingtravel

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