Posted on 02/23/2021 5:33:04 AM PST by Capt. Tom
Royal Caribbean announced its financial results for the 2020 financial year and provided insights into where the company will be heading this year.
As can reasonably be expected, the company experienced huge losses due to the pandemic, calling it the most difficult time in the company’s history. It’s not all bad though, bookings are positive.
At the same time, guest feedback from cruises in Singapore and the Canary Islands onboard affiliate cruise line TUI/ Mein Schiff has been overwhelmingly positive.
A Painful And Profound Impact Royal Caribbean CEO and Chairman Richard D. Fain called the last 12 months the most painful the company has had to go through in its history. The company’s brands Royal Caribbean International, Celebrity Cruises, and Silverseas, have been at a virtual standstill since the company’s voluntary pause in operations on March 13, 2020.
Richard D. Fain, Chairman, and CEO, said:
“The COVID-19 pandemic is having a painful and profound impact on our world and our business; unquestionably, this crisis is the most difficult in the company’s history. We remain confident about the ability of our company to recover and return to the positive trajectory we were on previously,”
The chairman remains optimistic as he believes a sharp decline in cases and increased vaccination grades show that a return to business is imminent:
“We are encouraged to see the sharp decline in cases and the growing availability of vaccines. We can’t wait to get back to the business of showing people the world and making great memories.”
While a return to cruising is something to look forward to, right now, the cruise line will be focussed on its financial numbers, which for all intents and purposes, do not look good.
Loss of $27.05 Per Share For 2020 $1.4 Billion is the loss that Royal Caribbean made in the 4th quarter of last year. The loss for the fourth quarter and full year of 2020 results from the impact of the COVID-19 pandemic.
Even now, the company is still burning cash at a rate of $250 million to $290 million per month. This amount will increase once the company has the go-ahead to start crewing the ships for guest operations.
The resumption is still a fluid and unknown factor for this year. Although ships are currently scheduled to sail at the end of April and May, the company acknowledges that the CDC’s framework remains uncertain in many areas.
The framework is an important step, but due to the lack of specifics, timings, and the cost of implementing its requirements, Royal Caribbean expects the return the be a phased approach. Initial cruises will have reduced guest occupancy, modified itineraries, and enhanced health and safety protocols.
A positive note is the ships sailing in Singapore and the Canary Islands. Quantum of the Seas is operating out of Singapore and TUI Cruises, a part-owned affiliate, has three vessels operating in the Canary Islands since November.
Fain, noted:
“Guests are sharing very positive reviews, and we also see a higher proportion of first-time cruisers than expected. We believe that these cruises, even before the availability of vaccines, are helping us learn and demonstrate to others how we can operate successfully under the current COVID-19 environment.”
How Does The Future Look? Although the cruise line will need to bring the ships out of various stages of lay-up, return crew members to the ships, and comply with a vast number of requirements, it is also looking forward to what this year and next year will bring for the company.
Bookings have been excellent throughout for all three brands. Bookings for the first half of 2022 are within historical ranges. However, it shows how big the will is of the people to return to cruises as the company spent little on marketing or sales.
Approximately 75% of bookings made for 2021 are new, and 25% are due to the redemption of FCCs and the “Lift & Shift” program. The company continues to provide guests on suspended sailings with the option to request a refund, to receive an FCC, or to “lift & shift” their booking to the following year.
After the sale of Azamara cruises last month for $201 million, and Celebrity Xperience, Majesty of the Seas, and Empress of the Seas also leaving the fleet, the company is leaner. Yet, it is still expecting various vessels to be delivered over the next 24 months. Expected to arrive are:
Odyssey of the Seas Silver Dawn Wonder of the Seas Celebrity Beyond
For 2021, Royal Caribbean says it is reluctant to offer insight into where things might be heading. The lack of information from the CDC, the ongoing pandemic, and a very fluid situation worldwide mean that we can only hope and see where we will be in three months. We might be seeing more postponements, or we might be seeing ships sailing from US ports once again.
Now now...I just heard on the radio...
Theres 44 Mil Americans have had at least the first shot 20 Mil have had both...and because of that the deaths have come way down...well at the nursing homes anyway...
See ??? get the shots and nobody dies...sounds like something a Chicago gangster would say...
I am at age 80. Took the 1st shot of vaccine 3 weeks ago. Next shot on March 4th. Feeling as energetic as always. Zero side effects except normal soreness at injection site for 1 or 2 days. Already resumed my weight lifting routine 2 weeks ago. I am very anxious to go on 30-40 more cruises, having already done 36 so far all over the world.
Some time in the next few months, this stock looks like it’ll be a good lowball buy opportunity.
I did not even need the vaccine. I am an exercise fanatic, doing daily treadmill and weight lifting machines at a private community gym. There is no way the virus can overpower my well oxygenated lungs.
My wife has stage-4 cancer diagnosed 3 years ago. Her cancer doctor told her to get vaccine, and she wanted me to take the vaccine so there is less chance of me passing on the virus to her. We both did a Carnival cruise end of February 2020. It was fully sold out and crowded. We probably got infected and had very mild symptoms. Probably acquired some form of immunity. Since then I have been to at least 300 public places with lots of people. No symptoms at all. Wife is afraid to step out of the house. And I don’t blame her. She is very weak. I am ready to join a ballet dance class.
A bit of gallows humor to think of a vaccinated only cruise being hit with Norovirus.
“I’m sorry that the industry is suffering, but complying with vaccine mandates is not the answer. I hope the industry stands strong and pushes back, because this is over blown & ridiculous.”
More info on Norwegians upcoming Thursday report -click link below. -Tom
“My family has a cruise planned for May - it had already been postponed from last year.”
You may want to read the latest article below on May Cruises. -Tom
https://www.cruisehive.com/carnival-cruise-line-just-removed-all-may-2021-sailings/47261
I still have my fingers crossed for our Jan. 2022 Celebrity cruise.
We’re on an American River Cruise, a much smaller company.
Will keep an eye out, however.
You seem to take delight at the loss of livelihood for hundreds of thousands of Americans. Fortunately you are wrong. Every cruise line is seeing a very high booking rate despite the circumstances. The lines just have to find a way around the power mad government agency’s.
Norwegian pulled the plug on May last week.
Also 2nd time cancelled, pushed it to June 2021
Boston had about 80 trips scheduled on different cruise lines in 2021 .
If Canada stays closed only a handfull will go, and those will be Bermuda trips, weather permitting.
You can see that is a problem for the cruise lines to figure out. If you can't get to and back from Bermuda because of bad weather, you cant really go further south to the Bahamas; and legally you need a foreign port in the trip. -Tom
Yeah we were one click away from booking a color trip from Boston in October but then the idiots in Ottawa pulled the plug for the entire year.
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