Carnival Cruises released their earnings report last week, showing just how hard the industry has been hit by COVID-19 restrictions.
Overall, Carnival reported a net loss of over $4 billion during the second quarter of 2020, with an 85 percent drop in year-over-year revenue from Q2 2019 to Q2 2020. During the quarter, Carnival also announced they would be dissolving six ships from their fleet to avoid further financial losses, with the possibility of even more ships being cut.
Despite these abysmal numbers for the company, Carnival has seen a 37 percent increase in stock price as of June 18 since their last earnings report in the middle of March. This could partly be explained by investors’ optimism that Carnival will soon return to a profit by reopening cruises later this year. However, on Monday, the company announced they would be pushing their return date back from August 1 to September 15.
Reports show that Carnival is burning through $650 million each month that cruises remain docked.