Royal Caribbean Group’s Q4 2020 revenue plummeted to $34.1 million as the COVID-19 pandemic kept cruise ships parked at ports
- COVID-19 pandemic brought the cruise industry to a virtual standstill
- Royal Caribbean’s total revenue for the fourth quarter plunged to $34.1 million from $2.52 billion last year
- Royal Caribbean said it expected to incur a net loss for its first quarter and the 2021 fiscal year
Royal Caribbean Group announced that it has lost over $1 billion in the fourth quarter of 2020, but the company pointed to strong booking trends for 2022
As the coronavirus crisis kept its cruise ships ashore, Royal Caribbean’s total revenue for the fourth quarter of 2020 plummeted to $34.1 million from $2.52 billion last year.
Industry analysts had expected a revenue of $35.6 million.
Royal Caribbean noted that cruise bookings for the first half of 2022 were within historical ranges and at higher prices, underlining a strong demand for cruises.
The company, that posted a rare negative revenue last quarter, said it expected to incur a net loss for its first quarter and the 2021 fiscal year.
Some industry experts expect Royal Caribbean, Carnival Corp and Norwegian Cruise Line Holdings Ltd to resume cruising gradually in the back half of this year, as governments in the United States and other major markets vaccinate millions of people.
As of December’s end, Royal Caribbean had about $4.4 billion in liquidity, up from about $3.7 billion at the end of the third quarter, after it raised $1 billion in a stock offering during the fourth quarter.
