Carnival posts another huge loss, operations set to resume in Germany

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Carnival PLC (LON:CCL) racked up a US$2.9bn loss in its third-quarter but said a second of its nine cruise brands is set to resume operations.


Italian brand Costa completed its first cruise for months on September 6 and Carnival said that Aida in Germany will also sail again soon.


“These brands are beginning the company’s anticipated gradual, phased-in resumption of guest cruise operations, said Arnold Donald, Carnival’s chief executive.


Cumulative advanced bookings for the second half of 2021 capacity currently are also at the higher end of the historical range, said the company in a statement.


The cruise liner has effectively been shut down for six months and the losses for the three months to August included US$0.9bn of impairment charges.


Carnival said its cash burn for this quarter and should be in line with expectations, while it ended the period with US$8.2bn in cash and cash equivalents.


The company said it would raise money opportunistically when the situation arises and has set up a facility to raise US$1bn from share issues.


Doanld said: “We continue to take aggressive action to emerge a leaner more efficient company.


“We are accelerating the exit of 18 less efficient ships from our fleet. This will generate a 12% reduction in capacity and a structurally lower cost base, while retaining the most cash generative assets in our portfolio.”


Shares eased 2% to 1,080p.

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