Carnival Corp. posts $4.4 billion loss, starts selling ships to cut costs

Posted On: 20-06-2020

Carnival Corporation & plc., the world’s largest cruise company, suffered a multibillion-dollar loss in the quarter ended May 31, 2020, due to the suspension of cruise operations related to COVID-19. U.S. GAAP net loss stood at $4.4 billion for the second quarter of 2020,representing a significant drop compared to U.S. GAAP net income of $451 million seen in the corresponding period a year earlier. Adjusted net loss in the three-month period ended May 31, 2020, amounted to $2.38 billion, against adjusted net income of $457 million posted in the same quarter last year. Total revenues for the second quarter of 2020 were $0.7 billion, lower than $4.8 billion in the prior year. In mid-March, the company suspended its guest cruise operations in the face of the impact of the coronavirus. For the majority of the second quarter, Carnival’s cruise operations have been in a pause and many of its ships in prolonged layups. Currently, 62 of the company’s ships are in their final expected pause locations. Carnival Corp. expects substantially all of its vessels to reach their full pause status during the third quarter. Once all ships are in paused status, the company estimates that its ongoing ship operating and administrative expenses will be approximately $250 million per month.