Third quarter 2020 adjusted net loss of $(1.7) billion.
In its latest corporate filing, cruise giant Carnival Corporation has revealed that it will be removing 18 ships from its fleet.
With no end in sight of the suspension of cruise operations and the urgent need to ride out these hard times, the Carnival Corporation has announced that it will dispose of another five cruise ships. The company expects to further enhance future liquidity, opportunistically.
While some cruise companies are restarting operations in a phased manner, including Carnival's Costa Cruises and AIDA, the industry is far from reaching pre-COVID-19 level capacity.
The company is expected to post an adjusted loss of $1.7 billion for the third quarter ended August 31, excluding non-cash impairment charges of about $900 million.
In a statement, Carnival Corporation chief executive Arnold Donald praised Costa Cruises' successful resumption of cruise operations this September and the cumulative advanced bookings for the second half of 2021, with "capacity now available for sale" being at the "higher end of the historical range, despite minimal advertising or marketing". Any of the vessels being sold or scrapped could be from any of Carnival's nine cruise brands around the world. Our business relies exclusively on leisure travel which we believe has historically proven to be far more resilient than business travel and can not be easily replaced with video conferencing and other means of technology.
"We continue to take aggressive action to emerge a leaner more efficient company". We are accelerating the exit of 18 less efficient ships from our fleet. This will generate a 12% reduction in capacity and a structurally lower cost base, while retaining the most cash generative assets in our portfolio.
"The company expects only two of the four ships originally scheduled for delivery in 2020, following the start of the pause, to be delivered prior to the end of fiscal 2020".
Regarding new ship deliveries, Carnival has stated it "expects only five of the nine ships originally scheduled for delivery in fiscal 2020 and 2021 to be delivered prior to the end of fiscal year 2021. The company now expects 9 cruise ships and 2 smaller expedition ships of the 13 ships originally scheduled for delivery prior to the end of fiscal year 2022 to be delivered by then".