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Carnival Posts Third-Quarter Loss, Bookings Prices Are Lower

The company reports a third-quarter loss of $2.86 billion, compared with a year-earlier profit of $1.78 billion.

Carnival (CCL) - Get Carnival Corporation Report reported a third-quarter loss Thursday and expects a loss for the fourth quarter and the year as the cruise ship operator attempts to recover from the coronavirus pandemic.

Shares of the Miami-based company were down 2.88% to $15.53 on Thursday.

Carnival posted a third-quarter net loss of $2.86 billion, compared with a profit of $1.78 billion a year ago. 

The company lost $2.19 on a per-share basis, a cent less than analysts' forecast, according to IBES data from Refinitiv.

'We expect a net loss on both a U.S. GAAP and adjusted basis for the quarter and year ending November 30," Carnival said in a regulatory filing.

The pause in guest operations, the company said, "continues to have a material negative impact on all aspects of the company's business, including the company's liquidity, financial position and results of operations."

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The cruise ship industry was crippled by the coronavirus, with several outbreaks occurring onboard ships.

Bookings for the second half of 2021 were at the higher end of the historical range, Carnival said, while pricing is lower by mid-single digits compared with the second half of 2019.

Total customer deposits balance as of Aug. 31 was $2.4 billion, Carnival said, the majority of which are future cruise credits, compared with total customer deposits balance of $2.9 billion at May 31.

The company's monthly average cash burn rate for the third quarter was $770 million, which was in line with the anticipated monthly cash burn rate. Carnival estimated it will burn about $530 million monthly in the fourth quarter.

Carnival said it was encouraged that the Centers for Disease Control's "no-sail-order" was extended by only one month to Oct. 31, the same date as the industry's end of voluntary suspension of passenger operations.

The order has been the source of some controversy, as CDC Director Robert Redfield was reportedly overruled when he pushed to extend a "no-sail order" on passenger cruises into next year.