Carnival posts €4bn quarterly loss and braces for more pain

Cruise operator virtually crippled by Covid-19 and taking write-downs on ship sales

Cruise line operators were among the hardest hit in the global health crisis, and the industry had some of the largest early, high-profile infections. Photograph: iStock
Cruise line operators were among the hardest hit in the global health crisis, and the industry had some of the largest early, high-profile infections. Photograph: iStock

Carnival Corp reported a quarterly net loss of $4.4 billion (€3.9 billion) on Thursday, as the cruise operator took major write-downs on the sale of some ships and was virtually crippled by the global Covid-19 pandemic.

Shares of the Florida-based company, which also warned of a net loss for the rest of the year, fell more than 4 per cent in premarket trading.

Cruise line operators were among the hardest hit in the global health crisis, and the industry had some of the largest early, high-profile infections.

The company said it expects to burn cash at the rate of about $650 million per month for the second half of 2020 and was speeding the sale of more ships.

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Excluding one-time charges, such as losses on ship sales, Carnival reported a preliminary second-quarter net loss of $2.4 billion or $3.30 per share.

The company revenue fell to $700 million for the second quarter ended May 31st, from $4.8 billion a year earlier.

– Reuters