Cruise titan Carnival Corp. reported a second-quarter loss of $4.4 billion, including $2 billion in impairment charges, and warned that it can’t predict when it will be able to resume operations given the lingering coronavirus shutdown.
- The world’s largest cruise company said its adjusted net loss for the period ended May 31, excluding the charges, was $3.30 a share. That’s far deeper than analysts’ expectation of a $1.95 loss. Revenue was just $700 million, a plunge from the year-earlier $4.8 billion. Carnival’s shares skidded in early trading.
- While rival Norwegian Cruise Line Holdings Ltd. this week extended its cruising suspension through the end of September, Carnival said it couldn’t provide a resumption target at all. Norwegian’s announcement slammed the brakes on what had been a remarkable recovery for cruise stocks, and Carnival’s further downbeat news is likely to extend the losses.
- Carnival is working to downsize its fleet, expecting a long, phased return to cruising when it eventually comes. The Miami-based company said it has preliminary agreements to dispose of six ships and is the process of concluding more such deals.
- Like other cruise operators, Carnival has taken steps to shore up its cash and debt positions in an effort to weather the pause. The company said it has a total of $7.6 billion in available liquidity and faces $250 million a month in operating and administrative expenses.
- Carnival shares were down 6.5% to $17.85 in premarket trading at 7:36 a.m. in New York. The stock was down 62% this year through Wednesday’s close.