Royal Caribbean CEO sees historically strong summer bookings, plans to pay down Covid debt

- Advertisement -


  • Royal Caribbean’s outgoing CEO Richard Fein told CNBC on Wednesday that the company is seeing historically strong bookings for next summer.
  • “It will generate the cash flow we need to pay off debt, reinvest in our technology, reinvest in our sustainability efforts, reinvest in our new ships.”
  • Royal Caribbean announced on Tuesday that Fenn is stepping down as CEO on January 3, after more than 30 years. Will continue to be president.

- Advertisement -

Royal Caribbean’s outgoing CEO Richard Fein told CNBC on Wednesday that the company is seeing historically strong bookings for next summer and plans to use the cash flow to pay down debt and reinvest.

- Advertisement -

,[The cruise business] Has always been a cash flow business. It’s a highly capital intensive business, but once you have ships, they become a cash cow,” Fenn said in an interview with “Squawk on the Street” a day after Royal Caribbean. announced That he is stepping down as CEO on January 3, after more than 30 years.

Fenn told CNBC he is confident he is leaving the top job at a time when the cruise industry is picking up after a hard hit during the height of the COVID pandemic. Royal Caribbean’s Chief Financial Officer, Jason Liberty, will take over as CEO, while Fenn will remain chairman of the board of directors.

- Advertisement -

Last month, Miami-based Royal Caribbean reported lower-than-expected revenue for the third quarter of about $457 million and a wider-than-expected adjusted loss per share of $4.91. However, booking volumes have improved significantly in the quarter since the slowdown this summer due to the Delta variant. The sailings for the full year 2022 have been booked within historical categories and at higher prices than in 2019, the company said.

“This will generate the cash flow that we need to reinvest in our technology, reinvest in our sustainability efforts, reinvest in our new ships,” Fenn told CNBC on Wednesday. Shares of Royal Caribbean were slipping about 1.5%. , For the year, the stock has gained more than 20%. “We have a huge gap to cover,” he said. “But now, it looks like we’re on our way back to [Covid] Even better.”

In its third quarter releaseRoyal Caribbean reported having approximately $19.9 billion in long-term debt, a 10% increase from the end of 2020.

With international borders reopening after the pandemic shutdown, trade from Europe is expected to hit the cruise industry. “The US is the major market, but international markets are growing even faster,” Fein said. “One of the things we’ve been very successful in is attracting Europeans to come on our ships in the Caribbean and Americans to get on our ships in the Mediterranean.”

Fenn said the cruise industry is clearly coming back and the way forward is very clear. “We are about to start our new development phase,” he said. “As the boundaries begin to open up, that all works in our favor as we start living life again.”

,

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox