Royal Caribbean Group said on Monday it was seeing an uptick in future bookings, following a disastrous year for the cruise operator, as travel enthusiasts look to sail again at a time governments globally have started mass vaccinations.
The company’s shares, down 44% last year, soared 9% in morning trading, as Royal Caribbean said it recorded a 30% increase in new bookings since the beginning of the year when compared to November and December.
Analysts have also tipped Royal Caribbean and its peers Carnival Corp and Norwegian Cruise Line Holdings Ltd to resume voyages gradually in the back half of this year, after the pandemic-triggered months-long halt.
Signs of revival are also coming from the fact that Cruise company Carnival is stuffing its face again with a $1 billion equity raise – its third such helping after Chief Executive Arnold Donald feasted on a combined $2.5 billion in share offerings late last year. Carnival had cash to ride out 15 months of zero sales, assuming monthly cash burn of $600 million, at the end of 2020.
“Now after 11 months of pandemic, I think we all know that COVID fatigue is real. People are clamoring for the opportunity to have experience outside their homes,” Royal Caribbean Group Chief Executive Officer Richard Fain said on an earnings call.
Royal Caribbean said bookings for the first half of 2022 were within historical ranges and at higher prices, with some on Reddit and Twitter saying they were itching to go on cruises again.
However, the operator of “Symphony of the Seas” cruise posted a net attributable loss of $1.37 billion for the quarter ended Dec. 31, taking its annual loss to $5.8 billion.
Royal Caribbean’s total revenue for the quarter was $34.1 million, compared with analysts’ estimates of $35.6 million, according to IBES data from Refinitiv. On an adjusted basis, the company lost $5.02 per share. Analysts had expected a loss of $5.20.
Miami-based Royal Caribbean forecast a net loss for its first quarter and the 2021 fiscal year.
On the other hand, despite a poor year, Carnival shares were priced at a mere 3% discount to Monday’s close. It coincides with optimism that vaccination success in the United States and Europe may at least allow Carnival’s baby-boomer demographic to travel freely again. (Reuters)