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Royal Caribbean ‘sailing in a changed world’

Royal Caribbean Cruises said that it expected to make a net loss in the second quarter and full year, after reported a net loss of $1.4bn in the first quarter.

The company said that booking volumes for the remainder of 2020 were “meaningfully lower than the same time last year at prices that are down low-single digits”.

The group has suspended its operations.

Royal Caribbean Cruises chairman & CEO Richard D. Fain said: “Responding to the dramatic change in business conditions caused by Covid-19 has required focus, dedication, ingenuity and improvisation from all our people, and their efforts have been nonstop.

“We understand that when our ships return to service, they will be sailing in a changed world.  How well we anticipate and solve for this new environment will play a critical role in keeping our guests and crew safe and healthy, as well as position our business and that of our travel agent partners to return to growth.”

The group highlighted a $4bn increase in additional financing through a secured bond issuance and increased revolver capacity; a $3bn reduction in its 2020 capital expenditures, a $800m 12-month debt amortisation holiday from certain export-credit backed facilities, and a substantial reduction in its operating expenses.