Royal Caribbean posts billion-dollar loss for third straight quarter

The cruise industry has virtually come to a standstill

  
A Royal Caribbean International cruise ship is seen at Circular Quay in Sydney Harbour, days after Australian Prime Minister Scott Morrison announced that international cruise ships would no longer be allowed to dock at Australian ports due to the coronavirus disease (COVID-19), in Sydney, Australia, March 18, 2020.

A Royal Caribbean International cruise ship is seen at Circular Quay in Sydney Harbour, days after Australian Prime Minister Scott Morrison announced that international cruise ships would no longer be allowed to dock at Australian ports due to the coronavirus disease (COVID-19), in Sydney, Australia, March 18, 2020.

REUTERS/Loren Elliott

Royal Caribbean Group reported a billion-dollar net loss for a third straight quarter on Thursday, as the cruise operator suffered from a COVID-19-driven halt to voyages.

The cruise industry has virtually come to a standstill as the pandemic halted voyages that had become a hotbed of infection. Some operators in Japan, Australia and California have even become the subjects of lawsuits for onboard outbreaks.

Royal Caribbean, said it expects to burn about $250 million to $290 million in cash every month during suspension of operations and warned of a net loss in the final quarter as well.

The expenses will rise when it starts returning its fleet into service to ensure compliance with COVID-19 protocols, the company said.

The Miami, Florida-based company posted a net attributable loss of $1.35 billion, or $6.29 per share, in the quarter ended Sept. 30, compared to a profit of $883.2 million, or $4.20 per share, a year earlier.

Quarterly revenue was in the negative at $33.7 million, compared with $3.19 billion a year earlier. 

(Reporting by Praveen Paramasivam in Bengaluru; Editing by Patrick Graham and Arun Koyyur) ((Praveen.Paramasivam@thomsonreuters.com;))

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