Carnival Corporation, Royal Caribbean Group and Norwegian Cruise Line Holdings (NCLH) are burning through cash as their fleets return to operations. Cruise Industry News says that cash burn numbers may be up in the third quarter of 2021 with the added costs to reactivate ships, needed maintenance, potential drydocks, procurement, getting crew back and more. Carnival Corporation’s cash burn for the first half of 2021 was USD $500m per month. That was actually better than a previous prediction of USD $550m. The company said it will not provide a forecast for its third quarter. Royal Caribbean reported its average monthly cash burn rate for the second quarter of 2021 at approximately USD $330m, slightly higher than the prior quarter due to additional ships in operation. According to Jason Liberty, executive vice president and CFO of the Royal Caribbean Group, the company is not reporting a cash burn estimate for the third quarter due to a “fluid” environment. NCLH said its average cash burn in the second quarter was USD $200m per month, higher than its guidance of USD $190m due to added restart cost. According to Mark Kempa, executive vice president and CFO of NCLH, the company’s expected average monthly cash burn rate will increase to USD $285m due to additional vessel restart costs.
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