Royal Caribbean faces massive loss as Omicron halt cruise calls

Royal Caribbean's stock fell 4% as a result of the Omicron variant of COVID-19 halts cruise ship calls around the world. The group announced on Friday that the rapid spread of the Omicron coronavirus type would push back its return to profitability by a few months, dealing another blow to one of the pandemic's worst-affected corporations.

The Omicron outbreak has pushed cruise line itineraries to adjust and even cancel in recent months, halting a fledgling recovery in a sector where ships have spent the majority of the pandemic docked in U.S. ports.

On an earnings call, Chief Executive Officer Jason Liberty noted, "The timing of Omicron was particularly unpleasant because a typical cruise booking season begins in early January."

The owner of Celebrity Cruises anticipates a deficit in the first half of 2022 before turning profitable in the second half. Refinitiv polled analysts, who predicted a loss in the first quarter and a return to profitability in the second.

"(A recovery) is just going to get pushed out, and we're going to have delays and starts and stops until we're all clear of the pandemic," said Ivan Feinseth, Tigress Financial Partners' chief investment officer.

The recurrence of COVID-19 cases has prompted the US Food and Drug Administration to issue a travel warning for cruises, forcing even frequent cruise passengers to avoid them. find out more

Total sales for the fourth quarter was $982.2 million, falling short of analysts' expectations of $1.04 billion. The adjusted per-share loss of $4.78 was more than the $3.92 expected.

Royal Caribbean, on the other hand, reported that bookings had picked up in late January and had recovered to pre-Omicron levels, with cancellations also decreasing.