Despite an adjusted net loss of $2 billion in the third quarter, Carnival Corp. detailed positive developments as eight of its nine cruise brands have gradually returned to service.
In its business update, the corporation said voyages for the third quarter of 2021 were cash-flow positive, a trend it expects to continue. Occupancy in the third quarter was 54 percent, building consistently month-to-month from 39 percent in June to 59 percent in August.
"We are very glad to be back doing what we do best, delivering memorable vacation experiences for our guests, while doing so in a way that best serves the interests of public health," said Carnival Corp. President and CEO Arnold Donald. "Our team members are executing exceptionally well on our return to service, exceeding the expectations of our guests and taking guest satisfaction to new heights. Even at this early stage with intentionally constrained occupancy levels, our voyages are already cash-flow positive."
Third-quarter booking volumes were higher than during the first quarter of 2021, but not as robust as the second quarter, the company said. That was primarily due to "lower booking volumes in August 2021, reflecting the impact on overall U.S. consumer confidence resulting from heightened uncertainty around the COVID-19 Delta variant." Still, cumulative advance bookings for the second half of 2022 are "ahead of a very strong 2019."
"Being the largest in our industry, it is not surprising that we are now successfully operating at a larger scale than anyone else in the industry," Donald said. "Our protocols have been working well and are enabling us to build occupancy levels as we return more ships to service. Looking forward, we continue to work towards resuming full guest cruise operations by next spring, in time for our important summer season, where we make the bulk of our operating profit."
The company expects to have its full fleet back in operation in spring 2022. Overall, Carnival Corp. disposed of 19 smaller, less-efficient ships since the industry paused operations in March 2020.
"Our booked position for the second half of 2022 is at a new historical high, including our seasonally strong third quarter with all our ships planned to be in operation, despite reduced marketing spending," Donald said. "The broader environment for travel, while choppy, has improved dramatically since last summer and we believe it should improve even further by next summer, if the current trend of vaccine roll-outs and advancements in therapies continues. We have also opened bookings for further-out cruises in 2023, with unprecedented early demand."
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