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The covid-19, the anchor in the million dollar cruise business 2:36
(CNN Business) –– The cruise industry has been on hold during the coronavirus outbreak, which has already had investors worried about Carnival's recent earnings. However, the figures were worse than expected.
Carnival posted a loss of $ 4.4 billion - the equivalent of $ 3.3 a share - for the second quarter. Analysts forecast a drop of $ 1.76 per share. Revenue slumped 85% to $ 700 million, below estimates of $ 738 million.
- READ: CDC Has Not Yet Informed Cruise Lines When They Can Resume Travel
In addition, the company cannot provide any guidance because it is "impossible to definitively predict when it will return to normal operations," the cruise company added in its statement on the results.
Carnival noted that operations will only resume after collaboration with the government and health officials, and that it will be gradual.
Carnival shares fell more than 2% on Thursday.
The company's bad news comes a day after Norwegian reported the cruise cancellation it had tentatively planned for later this summer, and extended the suspensions until September.
Norwegian shares were flat on Thursday, while Royal Caribbean's shares rose nearly 2%. But all three cruise companies have plummeted between 55% and 70% this year.
Royal Caribbean said last month that cruise demand for 2021 remained strong, a sign that consumers are eager to take vacations again if there is a second wave of covid-19 cases.
- MIRA: What awaits the cruise industry after the coronavirus crisis?
Carnival stressed in its earnings statement that it has ample liquidity of approximately $ 7.6 billion to withstand a prolonged suspension of operations. But he also said he expects to spend about $ 650 million in cash per month, on average, during the second half of 2020.
That raises concerns about financing. Carnival and other cruise companies were excluded from the first $ 2 trillion stimulus package that it passed in Congress last March for the coronavirus pandemic.
Although Carnival and its competitors are headquartered in Miami, none of them are legally based in the United States, allowing them to pay less in taxes. Carnival is incorporated in Panama, Royal Caribbean in Liberia and Norwegian in Bermuda.
Still, Carnival did qualify for $ 700 million in aid through a Federal Reserve program designed to provide funds to struggling companies.
CarnivalCarnival Cruise Linecovid-19CruisesRoyal Caribbean
