Carnival Says 2021 Bookings 'Within Historical Ranges'

Carnival shares rose after the cruise operator said that as of June 21, advance bookings for 2021 “remain within historical ranges."
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Carnival  (CCL) - Get Report shares on Friday rose after the cruise operator said that as of June 21, advance bookings for 2021 “remain within historical ranges at prices that are down in the low- to mid-single-digits range.”

The company also noted in a Securities and Exchange Commission filing that its AIDA line will resume trips operations from ports in Germany beginning next month with three of its ships. That will make it the first of the company's nine cruise brands to resume operations.

Carnival also said, however, that 13 ships are expected to leave its fleet, representing a 9% reduction in capacity.

The company also reiterated that the monthly average cash-burn rate for second-half 2020 is estimated at $650 million.

The coronavirus has decimated Carnival and other cruise companies, hitting their ships and then shutting down the entire industry.

“We have been transitioning the fleet into a prolonged pause and right-sizing our shore-side operations,” Carnival Chief Executive Arnold Donald said in the filing.

“We have already reduced operating costs by over $7 billion on an annualized basis and reduced capital expenditures also by more than $5 billion over the next 18 months. We have secured over $10 billion of additional liquidity to sustain another full year with additional flexibility remaining.”

In other cruise news Friday, Royal Caribbean Cruises  (RCL) - Get Report said it’s purchasing the one-third stake in luxury-expedition cruiser Silversea Cruises that it doesn't already own for $245 million of stock.

Carnival shares recently traded at $15.65, up 7.3%. They're off 70% year to date. Royal Caribbean shares moved up 5.1% to $49.51.