American cruise company Royal Caribbean reported Q2 losses of $1.35bn vs. $1.64bn during the same period last year, due to rising costs as the cruise line prepared ships to return to operation on increasing bookings that were marred by the spread of the Delta variant. Revenues were at $50.9mn, missing estimates of $149.7mn. Bookings grew 50% QoQ. Cash burn rate in Q2 was at $330mn. The company attributed the higher rate to the cost of bringing additional ships into operations. The cruise company reported liquidity of $5bn in Q2 and long term debt of $20bn. As per Jason Liberty, executive vice president and CFO, the cruise operator anticipates that 65% of its fleet will be back in service by the end of Q3 and 80% by the end of the year. Royal Caribbean said, “While it’s too early to make any definitive conclusions of the impact of the Delta variant on bookings, the company has seen a modest impact on closer-in bookings.
Royal Caribbean dollar bonds inched lower with its 4.25% 2026s down 1.39 to 95.489, yielding 5.31%
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