Royal Caribbean stock ( NYSE:RCL ), which was once trading at $43 per share, was down a startling 46% year to date, despite a brisk sales rebound after the COVID-19 outbreak. While the cruise line is fast returning to regular operations, the company’s debt pile continues to be a burden.
An industry in distress
Few sectors were as severely affected by the epidemic as cruise cruising. Passenger ships, with their cramped quarters and frequently inadequate ventilation, proved excellent breeding grounds for the rapidly spreading virus. Furthermore, the Centers for Disease Control and Prevention slapped a seven-month no-sail order on the businesses in March 2020, prohibiting these enterprises from functioning in their most critical market.
The substantial decline in revenue (Royal Caribbean incurred an operational deficit of $4.6 billion in 2020 and $3.87 billion in 2021 ) caused the business to sell some of its older ships, issue new shares, and borrow money to survive.
Nonetheless, it seems to be enjoying a brisk rebound in the aftermath of the crisis.
RCL Stock: Remarkable Recovery
Royal Caribbean’s second-quarter profits show how swiftly the company is recovering from the epidemic. Year over year, total revenue increased from $50.9 million to $2.18 billion as the business reopened its entire worldwide fleet. Nonetheless, operational expenses remain high owing to inflation and rising energy prices, which contributed to a $218.6 million operating deficit over the year.
Because Royal Ca...
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