Based on the research data analyzed and published by Stock Apps, Carnival had a $770 million monthly cash burn rate, compared to $250 million to $290 million for Royal Caribbean.
According to its Q3 2020 earnings report, Carnival Corporation suffered a $2.9 billion loss during the period. Its revenue dropped from $6.53 billion in Q3 2019 to $31 million, a 99.5% decline for the top cruise company globally.
The second largest cruise line, Royal Caribbean had a $1.2 billion loss during the same period according to its earnings report.
Global Cruise Industry to Shrink by 72% to $7.79 Trillion
Based on the research data analyzed and published by Stock Apps, Carnival had a $770 million monthly cash burn rate, compared to $250 million to $290 million for Royal Caribbean.
Moreover, according to Benzinga and Zack’s analysts’ estimates, Norwegian Cruise Lines could have an estimated 99.45% to 100% loss for the period.
Carnival’s revenue dropped by 85% in Q2 2020, going from $4.84 billion to $0.74 billion. Royal Caribbean had a 94% drop at the time, going from $2.81 billion to $0.18 billion. The biggest loser was Norwegian, dropping from $1.66 billion to $0.02 billion, a 99% drop. As of November 9, 2020, Carnival’s stock had plummeted by 72.81% year-to-date (YTD). Royal Caribbean stock at that time had sunk by 56.13% while Norwegian had dropped by 70.95%.
Though the global cruise industry has over 50 cruise lines and 270 ships, these three companies control 75% of the space. Between 2015 and 2019, the cruise industry saw a 20.5% spike in demand. In 2019, it served 30 million passengers and created 1.1 million jobs.
Prior to the pandemic, 32 million people wanted to take a cruise in 2020. According to Cruise Lines International Association, cruise suspensions cost the US economy $25 trillion and 164,000 jobs. A report from Statista states that the global cruise line industry will suffer a 71.6% YoY drop in 2020 revenue to reach $7.79 billion.
Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.
She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.
