Royal Caribbean Cruises has reported a net loss of USD 1.4 billion for the first quarter of the financial year. The figure compares to a profit of USD 250 million in the same quarter last year. The second-largest cruise company in the world saw revenue fall 17% to USD 2.03 billion over the period.

It sustained a non-cash asset impairment loss of USD 1.1 billion, which it said was entirely due to Covid-19. The cruise line has withdrawn its guidance for 2020 as well as the second quarter but said it expects to incur a loss on both timescales. It also expects a cash burn of USD 250-275 million per month during its prolonged suspension, more than 60% of which is operating costs.

Regarding forward bookings, the company said levels for the remainder of 2020 are meaningfully lower than the same period last year despite low single-digit prices. It would extend the suspension of most sailings across its cruise brands through to 31 July except the sailings from China.