Royal Caribbean stock rises 10% after seeing strong 'pent up demand' for summer 2021
Aug. 10, 2020
Royal Caribbean's stock rose 10% to over $57 a share on Monday, after the company announced 'remarkable' demand for cruises in 2021 in its core destinations of the Caribbean, Europe, Alaska, and Bermuda.
The company also announced losses of $1.64 billion in the second quarter, due to suspended operations.
For now, cruise lines are not expected to resume sailing out of the US before October 31, as instructed by the CDC.
Visit Business Insider's homepage for more stories.
Royal Caribbean's stock rose 10% to over $57 a share on Monday, after the company announced "remarkable" demand for cruises in 2021.
This comes after a tough year for the company, with stocks dropping to a record low of $19.25 per share in March, as the coronavirus pandemic closed ports around the globe and halted travel.
"The tone of our bookings, especially as we get into the second half of 2021, has been encouraging," said CEO and chairman Richard D. Fain in an earnings call. "Our guests want to come back. Families want and need the vacation."
Earlier on Monday, the company announced a $1.64 billion loss in the second quarter, along with a cash burn rate of about $250 million to $290 million per month while operations are suspended. Most cruise lines did not receive any stimulus money , as they are not incorporated or based in the US.
For now, cruise lines are not expected to resume sailing out of the US before October 31, as instructed by the CDC .
Accoring to CFO Jason T. Liberty, roughly 60% of Royal Caribbean's bookings are new, even with the option they give customers to rebook if they see fit.
Most of the cruises have been booked for the Caribbean, Europe, Alaska and Bermuda, which are Royal Caribbean's core destinations.
"Humans are social animals, and cruising will, in the near future, be able to offer people a meaningful and enjoyable way to safely fulfill this basic human need. People want to be together, and we will be ready to welcome them aboard," said Fain.
Bicycle-driven trolleys offer chance to cycle through scenic east Japan valleyLizzy Anjorin: ‘Husband snatching' doesn’t exist in IslamPakistan PM condemns 'Islamophobic' Charlie Hebdo cartoonsFreedom Jacob Caesar has donates home to Ghanaian war veteran, Private HammondThis TikTok Has Everyone Listening to Fleetwood Mac's 'Dreams' Again