American cruise operator Royal Caribbean reported a net loss of $0.5bn in Q2, narrower vs. last year’s net loss of $1.3bn. Revenues rose 4x YoY to $2.2bn, beating expectations of $2.1bn. Booking volumes for Q2 sailings averaged 30% above Q2 2019 booking volumes. On the balance sheet front, the company had a liquidity of $3.3bn as of June-end, which includes a $700mn commitment for a 364-day term loan facility. Its total debt currently stands at $23.2bn, of which $1.6bn will mature in the next five months. For the next quarter, the company has guided for $2.9-3.0bn in total revenues, an adjusted EBITDA of $700- $750mn, and capital expenditures for the remainder of 2022 are expected to be approximately $0.5bn, excluding the acquisition of Silver Endeavour. Jason Liberty, president, and CEO said, “During Q2, the company achieved returning entire global fleet back to operations and delivering positive operating cash flow and EBITDA. Consumers’ propensity to travel and cruise remains strong. The company continues to see a robust and accelerating demand environment for cruising and on-board spend.”

Royal Caribbean’s 11.5% 2025s traded 0.68 points higher to 106.75 to yield 8.76%.

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