Carnival has 11.5 billion in cash and short term investments

[BlerkOne]

and cash burn rate is better than expected

 

https://seekingalpha.com/filing/5469186

 

 

[Jasonsterling]

Granted but still bleeding 2 billion a quarter! That's insane- it's a miracle they've lasted this long. 

[BlerkOne]

It means they can last at least 4.5 quarters, likely more, with no US sailing and without needing more cash. They will be more reductions to cash burn, but yes it is a lot of money.

 

If they aren't allowed to sail from the US this year, I think they will be sailing from somewhere else.

[jetsfan58]

The U.S. is going to lose (as usual) and they will definitely sail elsewhere. I thing the CEO made that plain.

[Jasonsterling]

1 hour ago, BlerkOne said:

It means they can last at least 4.5 quarters, likely more, with no US sailing and without needing more cash. They will be more reductions to cash burn, but yes it is a lot of money.

 

If they aren't allowed to sail from the US this year, I think they will be sailing from somewhere else.

Yes and no to lasting 4.5 quarters- I mean yes, they can but it would be extremely foolish to burn down all their liquidity like that. It could really hamper development and expansion in the near to mid term- possibly even long term and make them extremely vulnerable to basically any economic downturn or fiscal emergency. Carnival lines alone has already shrunk their market share by scuttling 4 ships last year. Something that once done can't be fallen back on for liquidity in the future. Yes, though you are right and its a good optimistic viewpoint that Carnival won't necessarily go bankrupt this year and maybe that's why they haven't been as eager to pursue other ports of embarkation yet- maybe its indicative of their feeling of a strong position. There is that but at the end of the day I think they need a revenue stream going again for the ports that rely on them and the global workforce that relies on them as well as their own future fiscal security. Honestly I think the CDC needs to drop the charade and let the ports reopen as you may think as well. It just feels like the cruise lines have been forced into an unfair position.