Carnival reports huge net loss for 2nd qtr

[jimbo5544]

More bad news......

 

 

https://www.cruiseindustrynews.com/cruise-news/23108-carnival-reports-q2-earnings-loss-of-4-4-billion.html

[shof515]

this is only going to get worse

[Fredric22]

7 minutes ago, jimbo5544 said:

More bad news......

 

 

https://www.cruiseindustrynews.com/cruise-news/23108-carnival-reports-q2-earnings-loss-of-4-4-billion.html

This was expected, obviously.  A cruise company that can't operate cruises is definitely not going to have a good quarter! 

[jimbo5544]

3 minutes ago, Fredric22 said:

This was expected, obviously.  A cruise company that can't operate cruises is definitely not going to have a good quarter! 

Certainly a loss was expected, you are correct, hard not to have one without revenue coming in the door.  That said, no company can continue with multi billion dollar losses every quarter.  Keep in mind, that of the big 4, Carnival is in the BEST position.  NCL is in a world of hurt.

[Fredric22]

14 minutes ago, jimbo5544 said:

Certainly a loss was expected, you are correct, hard not to have one without revenue coming in the door.  That said, no company can continue with multi billion dollar losses every quarter.  Keep in mind, that of the big 4, Carnival is in the BEST position.  NCL is in a world of hurt.

I disagree with that.  They assume these losses and they are all capable of surviving into early 2021 with no cruise revenue. 

[jimbo5544]

Did I say they could not survive until 2021?  They assumed losses, I saw nothing on the amount.  Listen, I am big Carnival supporter, most here would to that 😉.  Not sure which part you disagree with....

[PhillyFan33579]

14 minutes ago, jimbo5544 said:

Certainly a loss was expected, you are correct, hard not to have one without revenue coming in the door.  That said, no company can continue with multi billion dollar losses every quarter.  Keep in mind, that of the big 4, Carnival is in the BEST position.  NCL is in a world of hurt.

CDC seems determined to see how long the cruise industry can survive without cruising from US ports. This is just speculation on my part, but there seems to be a lot more in play here than the CDC simply issuing no sail orders to keep people safe. This is based on the assumption NCL didn’t cancel cruises again without knowing what the CDC is going to do (i.e. extend the no sail order). 

[PatMunits]

5 minutes ago, jimbo5544 said:

Did I say they could not survive until 2021?  They assumed losses, I saw nothing on the amount.  

 

Presently CCL burns through twenty million dollars every day ($650M/month) to keep ships afloat. That's cash burn without the write offs of the decreased value of ships that they had to put up for sale in a depressed demand market. 
https://www.cbc.ca/news/business/carnival-cruise-earnings-1.5617139

Edited June 18, 2020 by PatMunits

[jimbo5544]

Just now, PhillyFan33579 said:

CDC seems determined to see how long the cruise industry can survive without cruising from US ports. This is just speculation on my part, but there seems to be a lot more in play here than the CDC simply issuing no sail orders to keep people safe. This is based on the assumption NCL didn’t cancel cruises again without knowing what the CDC is going to do (i.e. extend the no sail order). 

Whatever the reason, this is a worst case scenario.  If the no sail order continues into 2021, NCL will declare bankruptcy.

[jimbo5544]

Just now, PatMunits said:

 

Presently CCL burns through twenty million dollars every day ($650/month) to keep ships afloat. That's cash burn without the write offs of the decreased value of ships that they had to put up for sale in a depressed demand market. 
https://www.cbc.ca/news/business/carnival-cruise-earnings-1.5617139

I am sure that is the reason for removing the ships.  The drag is enormous.  If for some reason the CDC were to extend the no sail order into 2021, it would most likely be the end of cruising as we knew it.  It would survive with much small fleets under new names.  

[Fredric22]

7 minutes ago, jimbo5544 said:

Whatever the reason, this is a worst case scenario.  If the no sail order continues into 2021, NCL will declare bankruptcy.

NCL has already said they were positioned to go 18 months with no sailing. 

[keywest1]

That's a huge loss even with all the furloughs.  Such a shame

[jimbo5544]

25 minutes ago, Fredric22 said:

NCL has already said they were positioned to go 18 months with no sailing. 

Talk is one thing, go look at what they did make those comments.  Then look at what they have to repay and when.  Then look at what they right off every month and THEN see if you agree with their comments.  By far they are the cruise line in the most precarious position.

[jimbo5544]

23 minutes ago, keywest1 said:

That's a huge loss even with all the furloughs.  Such a shame

Yes it is.  They laid off a much larger percentage of people then they furloughed.  This people are terminated, no longer employees.  

[drsel]

So is it safe to book carnival Cruises for 2021.
Obviously I am avoiding Norwegian

[Stick93]

10 minutes ago, drsel said:

So is it safe to book carnival Cruises for 2021.
Obviously I am avoiding Norwegian

Book casino rate - it will be like you are playing already! 
 

Nobody knows what will be and who will survive. I think is pretty obvious Carnival being the biggest player has the most to play with and will survive the longest. But what it looks like when this is over - who knows. . 

[jimbo5544]

13 minutes ago, drsel said:

So is it safe to book carnival Cruises for 2021.
Obviously I am avoiding Norwegian

Carnival will survive this

[drsel]

Even I strongly feel that Carnival, Royal Caribbean and MSC will all survive.

[BlerkOne]

"In connection with its capacity optimization strategy, the company intends to accelerate the removal of ships in fiscal 2020 which were previously expected to be sold over the ensuing years. The company already has preliminary agreements for the disposal of six ships which are expected to leave the fleet in the next 90 days and is currently working toward additional agreements."

 

 

"In addition, the company has $8.8 billion of committed export credit facilities that are available to fund ship deliveries originally planned through 2023."

[jimbo5544]

4 minutes ago, BlerkOne said:

"In connection with its capacity optimization strategy, the company intends to accelerate the removal of ships in fiscal 2020 which were previously expected to be sold over the ensuing years. The company already has preliminary agreements for the disposal of six ships which are expected to leave the fleet in the next 90 days and is currently working toward additional agreements."

 

 

"In addition, the company has $8.8 billion of committed export credit facilities that are available to fund ship deliveries originally planned through 2023."

Interesting, where are the quotes from?

[BlerkOne]

Just now, jimbo5544 said:

Interesting, where are the quotes from?

 

Your article.

[jimbo5544]

1 minute ago, BlerkOne said:

 

Your article.

Lol...thanks

[BlerkOne]

Carnival operations are not limited to the US and could resume in other parts of the world, when ready.

[jimbo5544]

3 minutes ago, BlerkOne said:

Carnival operations are not limited to the US and could resume in other parts of the world, when ready.

From what I have read, Costa appears to be the most aggressive (at least of the large lines). 

Edited June 18, 2020 by jimbo5544

[Garf]

Expect bankruptcy coming soon for some cruise lines.