Published on : Wednesday, August 11, 2021
As some ships emerge from encumbrance back into business, the flagship lines such as Royal Caribbean Group, Carnival Corporation and Norwegian cruise Line Holdings are still burning through cash.
Cash burn members may be up in the third quarter with extra charges to reactivate ships, potential dry-docks, procurement, needed maintenance and getting the crew back home. One of these big cruise companies provided estimates on third quarter cash burn indicating it would be up close to 45 percent.
Carnival Corporation suffered a cash burn of 500 million USD per month for the first half of 2021. However, the number was quite satisfactory than a previous forecast of 550 USD. This development was due to the timing of cash received from shop sales shortly before the second half. Some other small working capital changes also contributed to this improvement.
Royal Caribbean Group
Royal Caribbean recorded its monthly cash burn rate for the second half of 2021 of approximately 330 million USD which is slightly higher than the previous quarter as the company brought its additional ships into business. The Executive Vice President and CEO of the company mentioned in a statement that as the environment continue to remain fluid, they are providing a cash burn estimate or the allied counterbalance generated by profits and new customer deposits.
Norwegian Cruise Line Holdings
The average cash burn for the second half of 2021 amounted 200 million USD per month which is higher than its guidance of 190 million USD driven by the report of additional ship launches in the company’s cruise recommencement plan and the restart expenses associated with that.