Royal Caribbean Group Issues Update on Bookings, Operations

Royal Caribbean Group reported third-quarter financial results and provided a business update on how it’s dealing with the continuing global COVID-19 pandemic.

The company voluntarily suspended operations on March 13 but has since restarted cruising in July with three vessels from TUI cruises and two ships from Hapag Lloyd, and in September, for a limited period, with one Silversea Cruises’ ship. Royal Caribbean Group also includes Royal Caribbean International, Celebrity Cruises and Azamara.

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The company also received approval to sail from the Singaporean government and plans to operate the Quantum of the Seas, from the Royal Caribbean International fleet, starting in December.

The company reported a third-quarter adjusted net loss of $1.2 billion or $5.62 per share, compared to an adjusted net income of $896.8 million or $4.27 per share in the same period last year.

So far, the cumulative booked position for sailings in the second half of 2021 is within historical ranges with prices that are down slightly year-over-year.

More than 65 percent of 2021 bookings are new, and the rest are due to the redemption of future cruise credits and the “Lift & Shift” program which rebooks cruises to the following year.

As of Sept. 30, the company had $1.8 billion in customer deposits, of which about 50 percent are credits, and $180 million is for fourth-quarter 2020 sailings. Approximately 50 percent of the guests booked on canceled sailings have requested cash refunds.

The business update also said the company plans to accept delivery of Silversea’s Silver Moon this week. In 2021, the company expects the delivery of Odyssey of the Seas during the first quarter and the Silver Dawn during the fourth quarter; the latter had previously been expected to be delayed to 2022.

The company also highlighted the Healthy Sail Panel, convened with Norwegian Cruise Line Holdings Ltd. and made up of medical and scientific experts. The panel submitted its recommendations to the Centers for Disease Control and Prevention on Sept. 21.

“We understand the importance of getting this right and are preparing to put these plans to the test with a gradual and methodical return to service in the near future,” Royal Caribbean Chairman and CEO Richard D. Fain said.

As of Sept. 30, the company had liquidity of approximately $3.7 billion. The company estimates its cash burn to be, on average, in the range of approximately $250 million to $290 million per month.

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