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Covid-19 Hit: Cruise Company Royal Caribbean Reports $1.6bn Los For Q2

Covid-19 Hit: Cruise Company Royal Caribbean Reports $1.6bn Los For Q2
The cruise industry is one of the worst hit by the novel coronavirus pandemic.
And the quarterly results from the industry are reflecting the massiveness of the pandemic hit.
A net loss of $1.6bn for the second quarter of the year was reported by Royal Caribbean Group, a period during which the cruise operator was forced to cancel all sailings during that period because of the coronavirus pandemic.
In contrast in the same period a year ago, a net profit of $473m was made by the group which owns and operates brands including Royal Caribbean and Celebrity Cruises.
An “unprecedented challenge” to the cruise industry is being posed by the Covid-19 pandemic, said the company which was forced to suspend all of its voyages globally on 13 March.
Currently the company is burning through a huge amount of cash every month, to the tune of between $250m and $290m, said the Royal Caribbean, because none of its ships are currently sailing. But at the same time, the company y is being forced to incur running costs including operating and administrative expenses as well as previous commitments to build new vessels.
In the eventuality of the current stalemate in its business is dragged for a longer period of time, the company is planning to devise means to reduce its outgoing expenditures. The company had taken “substantial actions” to prop up its financial position including raising new debt secured on some of its ships, it said.
Some of its operations are expected to being at the start of November, said the group which in July this year dropped “Cruise” from its corporate name.
The company’s chief executive, Richard D Fain said that the current period off a hiatus in business is being utilized by the Royal Caribbean to increase the operational efficiency of the company.
 “Our teams are working tirelessly to return to service soonest and doing so by developing new health and safety protocols to protect the well-being of our guests, crew and destinations we visit,” Fain said.
Compared to the same period of 2019, the bookings for the remainder of 2020 were “meaningfully lower”, Royal Caribbean said. it however said that the advance booking for 2021 were going in the right direction.
The customers of the company have also been encouraged to move their cruise to the same sailing the following year instead of asking for a refund, the company said. It however added that refund of booking money has been sought by about 48 per cent of the passengers who had booked on trips that have been cancelled by the company.
A business update on what initiatives and changes it is doing during this shutdown was also provided by the Royal Caribbean group in addition to the quarterly results.
The company’s work was touted with the Healthy Sail Panel to be ready to start up operations when the time is right by the CEO of the group.
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Christopher J. Mitchell

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