(CNN Business) — The cruise industry has been stalled during the outbreak of coronavirus, which already had investors worried about the recent gains of the Carnival. However, the figures were worse than expected.
Carnival recorded a loss of 4,400 million dollars –the equivalent of 3.3 dollars per share– for the second quarter. Analysts predicted a fall 1.76 dollars per share. Revenue plunged 85% to $ 700 million, below estimates of 738 million dollars.
In addition, the company cannot provide any guidance because it is “remains impossible to predict definitely when it will return to normal operations,” added the cruise company in its press release about the results.
Carnival pointed out that operations will only resume after the collaboration with the government and health officials, and that it will be a gradual manner.
Shares of Carnival fell more than 2% this Thursday.
The bad news of the company are known a day after Norwegian report to the cancellation of cruise ships that had been tentatively planned for the end of this summer, and extended the suspension until September.
The actions of Norwegian remained stable this Thursday, while the Royal Caribbean went up by almost 2%. But the three cruise companies have plummeted by between 55% and 70% this year.
Royal Caribbean said last month that demand for cruises to 2021 remained strong, a sign that consumers are eager to take a vacation again if there is a second wave of cases covid-19.
Carnival emphasized in the statement on its earnings which has a wide liquidity of approximately 7.600 million dollars to support a long-term suspension of operations. But he also said that it expects to spend around $ 650 million dollars in cash per month, on average, during the second half of 2020.
This arouses concerns about the funding. Carnival and other cruise companies were excluded from the first stimulus package of 2 trillion dollars that was approved in Congress last march by the pandemic coronavirus.
Although Carnival and its competitors have their main offices in Miami, none of them is living legally in the united States, which allows them to pay less taxes. Carnival is incorporated in Panama, Royal Caribbean in Liberia and Norwegian in Bermuda.
Even so, Carnival yes rated for 700 million dollars in aid through a program of the Federal Reserve designed to provide funds to companies in difficulties.
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