Carnival bookings trending at higher end of historical ranges, but pricing is down

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Shares of Carnival Corp. slipped 0.3% in morning trading Thursday, after the cruise operator said advanced bookings for the second half of 2021 capacity that is currently available for sale is at the “higher end” of historical ranges. The company said that the pricing on those bookings are lower by mid-single-digit percentage ranges compared with the second half of 2019, reflecting the effect of future cruise credits from cancelled cruises as a result of the COVID-19 pandemic. Regarding liquidity, Carnival said it had $8.2 billion in cash and cash equivalents as of Aug. 31. The monthly average cash burn rate for the third quarter was $770 million, in line with expectations. “Currently, the company is unable to predict when the entire fleet will return to normal operations, and as a result, unable to provide an earnings forecast,” the company said in a statement. “The pause in guest operations continues to have a material negative impact on all aspects of the company’s business, including the company’s liquidity, financial position and results of operations.” Carnival’s Costa and AIDA brands have resumed limited operations. The company expects to report losses on a net and adjusted basis for the fiscal quarter and year ending Nov. 30. The stock has tumbled 68.6% year to date, while the S&P 500 has gained 6.3%.
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