Carnival Cruise Line Lost $2.1 Billion But Future Looks Bright

Carnival announced on Thursday that the company lost more than $2 billion by the end of the second quarter. The company lost a total of $14 billion since the pandemic.

Cruise lines are still struggling to make a comeback since the pandemic. CDC requires cruise lines to meet the 95% vaccination threshold for their passengers and crew. If not, they will have to run a simulated voyage to implement the necessary COVID protocols aboard their ship.

Despite losing billions, the future looks bright as bookings for next year have already surpassed 2019’s performance.

For CEO Arnold Donald, 2021 is expected to be “choppy, but the path and the trend is clear—there is pent-up demand” as reflected by their bookings. For this year, the company plans to start limited US trips by July and August with ships coming from Florida, Texas, and Washington.  By the end of November, Carnival is expecting to sail 42 ships.

A Mix of Vaccinated and Unvaccinated Passengers

The CEO also clarified that there will be a mix of both vaccinated and unvaccinated individuals aboard. However, those who aren’t fully vaccinated will have to take tests and abide by different protocols such as social distancing and wearing of masks.

Carnival Cruise Line is also looking ahead as it plans to grow its fleet. By 2023, Carnival Cruise line will have two additional ships. This is considered a bold move as the company is still burning $500 million a month. According to Chief Financial Officer David Bernstein, the $9.3 billion in cash and short-term investments are enough to get the company going.

For Bernstein, the company is expected to profit by next spring if it reaches normal occupancy levels and if a full fleet is going to sail. However, there are still other factors at play that could still stop Carnival’s recovery. There is the high cost related to restarting operations plus the seasonality of cruising.