Shares of Royal Caribbean jumped 10% Monday after executives said there was pent-up demand and “remarkable” bookings for its international cruises in 2021, despite reporting a $1.6 billion loss for the second quarter and a cash burn rate in excess of $250 million a month.
The industry suspended global operations about five months ago after several outbreaks of the coronavirus left passengers and crew under quarantine aboard ships, drawing international attention. Much of the cruise industry, including Royal, initially suspended sailings until mid-April only to extend it several times. Most cruise operators now say they don’t expect to be sailing again until at least Oct. 31.
But shares of Royal continue to recover from its low of $19.25 per share in March, rising to more than $57 per share on Monday as executives tout a strong financial position and hopeful year-ahead bookings. The company hit a 12-month high of $135.32 a share in January.
Source:
CNBC
