MIAMI — Carnival Corp. posted an adjusted net loss of US$2 billion for the fourth quarter of 2021, however there’s reason for optimism for the world’s largest cruise company.
Carnival Corp. ended Q4 with $9.4 billion of liquidity, and 61% of the cruise company’s capacity is back in operation. Carnival Corp. says it expects the full fleet to be back in operation by spring 2022.
The company also notes that cumulative advanced bookings for the second half of 2022 and first half of 2023 are at the higher end of historical ranges and at higher prices, with or without future cruise credits, when compared to 2019 sailings.
Best of all, says Carnival Corporation & plc President and CEO Arnold Donald, the company’s cash from operations turned positive in November 2021, “and we expect consistently positive cash flow beginning in the second quarter of 2022 as additional ships resume guest cruise operations.”
Donald adds that since Carnival Corp. resumed guest cruise operations, the company has established effective protocols for COVID-19 and its variants and have returned 65,000 team members and 50 ships, “all while delivering an exceptional guest experience to over 1.2 million guests and counting. And we have done that while honoring our commitment to strive for excellence in compliance, environmental protection and the health, safety and well-being of everyone.”
The company achieved 4% higher revenue per passenger day in Q4 compared to a strong fourth quarter of 2019, while at the same time ramping up occupancy and capacity. The company’s flagship brand, Carnival Cruise Line, experienced another quarter of double-digit revenue growth per passenger day compared to 2019, operating at nearly 60% of its capacity while also improving occupancy, and is approaching 90% occupancy levels this month.
The company’s monthly average cash burn rate for the fourth quarter of 2021 was $510 million, “which was better than expected,” according to the Q4 results statement.
Carnival Corp. is anticipating a net loss for the first half of 2022 and a profit for the second half of 2022.
