Carnival business updateCarnival Corp releases a business update that sends prices cruising up 1.40%
The cruise line announced record levels of booking during the first quarter of 2021, up over 90% from Q4 levels; and said that its current bookings for 2022 are even higher than those reached in 2019 before the pandemic as people desperately await a holiday after being stuck in one house for 18 months. Carnival had some other numbers for us to look at, reporting that its quarterly net loss widened to $1.97 billion from a loss of $781 million a year ago, but cash burn was less than expected and optimism remains strong.
Carnival stock remains down by around 43% compared to levels seen in mid-February 2020, but prices have rallied around 15% since the beginning of the year thanks to a decline in COVID-19 cases and vaccine rollouts. The stock hit a bump in March as Euope saw a rise in cases and halted rollouts amid concerns about the AstraZeneca vaccine, and the company was forced to postpone cruises until Q3 2021. However, the start of April saw a jump of around 12% as the CDC announced that vaccinated people could begin to travel sooner than thought, and that cruises could be allowed back to the seas as soon as early summer, after Carnival threatened to move some of its ships to other markets.
With an exciting roster of six new, more efficient ships by December and with lower capacity from the exit of 19 less efficient ships, we expect to capitalize on pent-up demand and achieve significant cost improvement from the greater efficiency of our fleet, along with ongoing streamlining of shoreside,
the report said.