Royal Caribbean Group (RCG), the world’s second largest cruise shipping company, said that booking activity for the second half of 2021 is aligned with its anticipated resumption of cruising, but added that a 2021 loss appears likely.

“Pricing on these bookings is higher than 2019 both including and excluding the dilutive impact of future cruise credits (FCCs),” it said in a statement, referring to bookings for the second half of this year.

“While the brands are still in the process of opening for sale the remainder of their 2022/2023 seasons, first and second quarter 2022 sailings have been open for some time. Cumulative advance bookings for the first half of 2022 are within historical ranges and at higher prices. This was achieved with minimal sales and marketing spend which the Company believes highlights a strong long-term demand for cruising,” RCG said

Since the last business update, approximately 75% of bookings made for 2021 are new and 25% are due to the redemption of FCCs and the "Lift & Shift" programme At the end of 2020, RCG had $1.8 billion in customer deposits of which 50% are related to FCCs. “Since the suspension of operations, approximately 53% of the guests booked on cancelled sailings have requested cash refunds,” it said.

RCG’s operation is still subject to the impact of COVID-19.  Consequently, it cannot reasonably estimate its financial or operational results. “Notwithstanding the foregoing, the Company expects to incur a net loss on both a US GAAP and adjusted basis for its first quarter and the 2021 fiscal year, the extent of which will depend on many factors including the timing and extent of the return to service,” it stated.

The expected capital expenditures for 2021 are $2.1 billion. These expenditures are mainly driven by our newbuild projects which have committed financing. During 2021, RCG expects the delivery of Odyssey of the Seas and Silver Dawn during the first and fourth quarters, respectively.