Royal Caribbean CEO sees historically strong summer bookings

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Royal Caribbean Retiring CEO Richard Fein told CNBC on Wednesday. The company is seeing historically strong bookings next summer and plans to use cash flow to repay its debt and reinvest.

“”[The cruise business] It has always been a cash flow business. It’s a very capital-intensive business, but when you get a ship, they turn into a dollar box, “Fain said in an interview.Squawk on the Street, “The day after Royal Caribbean Presentation Resign as CEO on January 3rd after taking command for over 30 years.

Fine told CNBC that he was confident that he would quit his top job during a recovery period after the cruise industry was hit hard at its peak. COVID pandemic.. Jason Liberty, Royal Caribbean Chief Financial Officer, will take over as CEO, and Fein will continue to serve as Chairman of the Board.

Last month, Miami-based Royal Caribbean reported lower-than-expected earnings of approximately $ 457 million and higher-than-expected adjusted losses of $ 4.91 per share in the third quarter. However, bookings have improved significantly this quarter since the slowdown due to the Delta variant this summer. According to the company, the full-year 2022 voyage is booked at a higher price than 2019, to the extent of the past.

Fain told CNBC on Wednesday as Royal Caribbean shares fell by about 1.5%. .. Over the year, inventories have increased by more than 20%. “We have a big gap to overcome,” he added. “But now we seem to be on the right track to return to our previous state. [Covid] And even better. “

With its third quarter releaseRoyal Caribbean reported that it had long-term debt of nearly $ 19.9 billion, up 10% from the end of 2020.

Businesses from Europe are expected to hurt the cruise industry as borders reopen after the pandemic is closed. “The United States is the dominant market, but the international market is growing even faster,” says Fain. “One of our great successes is to attract Europeans to board our ship in the Caribbean and Americans to board our ship in the Mediterranean.”

Mr Fine said the cruise industry is clearly back and the path ahead is very clear. “We are about to start a new stage of growth,” he said. “When the borders begin to widen and we start living again, everything works in our favor.”

Royal Caribbean CEO sees historically strong summer bookings

Source link Royal Caribbean CEO sees historically strong summer bookings

The post Royal Caribbean CEO sees historically strong summer bookings appeared first on Eminetra.

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