Carnival (CCL) Made Loss of $2 Billion in Last Quarter As Tourism Is Still On Halt

For the year, the cruise company Carnival Corporation & Plc, (CCL), announced a loss of more than $2 billion. The operation of the cruise company was essentially shut down.

In the quarter ended November 30, the net loss of the world’s largest cruise operator, Carnival, hit $2.2 billion, according to provisional statistics on the company’s website. The adjusted net loss amounted to $1.9 billion.

One of the worst hit by the COVID-19 pandemic has been the cruise market. Passenger cruises were scheduled to begin on September 1, but they had to be delayed due to the second coronavirus wave. The corporation prolonged a pause in cruise activities in the United States earlier this month until March 31, Reuters said.

The firm had intended to sell 19 of the least productive vessels to finance the company. In 2019, they accounted for nearly 3% of operating profit. 15 liners had already left the Carnival fleet by January 11.

Carnival reports that cruise demand remains strong. Despite limited ads, the average number of pre-bookings for the first half of 2022 is higher than for the same time in 2019.

With $9.5 billion in cash on hand, Carnival finished the year. Chief Financial Officer David Bernstein said the operator, also in a zero-income environment, has enough resources to finance its business until 2021.

Carnival warned that in both the first fiscal quarter of 2021 and the entire fiscal year ending November 30, it expects to make a net loss. The suspension of tourism operations, including its financial status and operational performance, continues to have a negative effect on the group.

In trade on the NYSE, as of writing, the shares of the Carnival Corporation & Plc, (CCL) dropped by 1.15 percent to $20.23. The company has also closed the weekend session at $20.47, dropping -1.30% on Friday.

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