Losses continue for Carnival

CARNIVAL Corporation has provided its second quarter business update, posting another adjusted net loss of USD$1.9 billion - and more on the way, the company expects.

Although cash operations turned positive in the quarter, Carnival said it expects another net loss for the third quarter, as well as for the full year, continuing its brutal losing streak since the pandemic.

The second quarter ended with USD$7.5 billion of liquidity, including cash, short-term investments, and borrowings available under Carnival’s revolving credit facility.

In more positive news, revenue increased by nearly 50% in the second quarter compared to Q1, reflecting continued sequential improvement.

Adjusted EBITDA for the second quarter was -US$900 million, which is an improvement over the first quarter.

Occupancy in the second quarter was 69%, an increase from 54% in Q1, with customer deposits increasing US$1.4 billion to US$5.1 billion as of 31 May, from US$3.7 billion as of 28 Feb.

Booking volumes for all future sailings during the second quarter were nearly double the first quarter - Carnival’s best number since the pandemic.

During a conference call to discuss quarterly earnings, President & Chief Executive Officer Arnold Donald (pictured) did not rule out the sale of one of Carnival’s brands to raise cash.

“We’re very pleased with our portfolio of brands...having said that, our job is always to keep an open mind and do what’s best for the shareholders,” he told Wall Street analysts.

“We’re only going to do what makes sense for the shareholders, given our projections of opportunity given the portfolio we have.”

Donald, who is transitioning to Vice Chair, said as cash flow turned positive, now was the time to transition leadership to the incoming Josh Weinstein, who will replace him from Aug.