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Carnival warned of a loss for the year after net income more than halved in the first quarter of the year as the outbreak of the Covid-19 virus weighed on bookings and forced the cruise operator to temporarily pause its global fleet and delay shipbuilding activity.
'Given the uncertainty of the situation, the Corporation is currently unable to provide an earnings forecast, however it expects a net loss on both a U.S. GAAP and adjusted basis for the fiscal year ending November 30, 2020,' the company said.
The ongoing effects of Covid-19 virus on its operations and global bookings would have a material negative impact on its financial results and liquidity, it added. Ship deliveries would be delayed amid a virus-led impact on ships are under construction.
First-quarter 2020 adjusted net income fell to $150m, compared to an adjusted net income of $338m on-year.
For the seven week period beginning January 26, 2020 and ending March 15, 2020, booking volumes for the remainder of the year were meaningfully behind the prior year on a comparable basis as a result of the effects of Covid-19, Carnival said.
'As of March 15, 2020, cumulative advanced bookings for the remainder of 2020, are meaningfully lower than the prior year at prices that are considerably lower than the prior year on a comparable basis,' it added.
At 8:56am: (LON:CCL) Carnival PLC share price was +54.5p at 791.7p