Cruise ship operator Royal Caribbean Group has reported a bigger-than-expected Q2 loss. It said that with the current global cruise industry still effectively at a standstill, it expected to burn between $250m to $290m of cash on average per month.
This range includes all interest expenses, including the increases driven by the latest capital raises. It also includes ongoing ship operating expenses, administrative expenses, hedging costs, expected necessary capital expenditures (net of committed financings in the case of newbuilds) and excludes cash refunds of customer deposits, commissions, debt obligations and cash inflows from new and existing bookings.
Royal Caribbean said that it was considering ways to further reduce its average monthly cash burn, should there be a further prolonged out-of-service, and during its operational restart, whenever that might be.
Royal Caribbean has pledged many of its ships to raise new debt. It said it had about $4.1bn in cash and cash equivalents at the end of June.
Net loss attributable to the company for the quarter was $1.64bn, or $7.83 per share. On an adjusted basis, Royal Caribbean lost $6.13 per share, while analysts had expected a loss of $4.82 per share, according to Refinitiv IBES data.