Carnival Corporation & plc (CCL) 7 Apr 212021 Q1 Earnings call transcript

Good morning, everyone, and welcome to our Business Update Conference Call. I am Arnold Donald, President and CEO of Carnival Corporation & plc. Today, I'm joined telephonically by our Chairman, Micky Arison; as well as David Bernstein, our Chief Financial Officer; and Beth Roberts, Senior Vice President, Investor Relations. Thank you all for joining us this morning.

Now before I begin, please note that some of our remarks on this call will be forward-looking. you cautionary refer press in must release. I to statement the today's Therefore,

thing is, XX Now everyone's going course, administration conditional Xnd we on Of the the that under order, to in issued have health. mind ships disappointed status. the sailing interest the in in the additional guidance And very sail CDC approaches order, to under with achieved here of when work conditional are our the find the we're U.S.? all while fall sail to with April of resuming waters, resume we are a and serves continuing practical way public to and the green cruising that U.S. best

paused are coming Throughout but to cruise Now emerging roster demand. it's of even positioning our capitalize company new even have to been guest an been stronger on exciting company. we pent-up to are way Carnival across over we brands back, back and our an pause, we ships operationally. stronger return we operations, this a with an our since on operations We're year

of We levels. operations an are cost the streamlining from of relative efficient minimizing our sustainability on achieving emphasis ships, progress ongoing with to efficiencies less pre-COVID on continued And along with we've exit our significant shoreside efforts footprint. carbon

brands sailing this resume will summer, that X a We our excited on limited of are basis. majority the albeit

so the from Islands, sailing overwhelmingly German feedback already is Canary AIDA fact, from positive In our guests.

pause, May. X beginning in ships a following with voluntary next Europe, Costa will Southern sailing resume For month

this Seacations and in the UK asset we summer. And portfolio of starting far Cunard has offer August, the signature new demonstrated, have moments with offering ships Again, will of resuming Greece in our first respectively. X for been flagship, have announced ultra-luxury operations Summer certainly its June sailing as Iona. UK not of out is and Seabourn July. as July P&O including in X an of say the the have last Cruises representing sailing UK, Princess offering and For so have cruising cruises brand's ships, ships from we X fleet. August, And will but an brands will XX% least, our X ships Seabourn, with inaugural coastal clearly

we addition, operations hotels opening are Alaska summer. also In our in and this tour

for help sailing. infrastructure Our our been key land-based in leading have the Opening majority to in long-time who advocates partners cruising. of has Alaskan also return ownership to of support vast Alaska presence our our hotels been our strong very will

focused are demonstrating at so capital operations as quickly in doing of interest resuming of way public while health. as best We serves on practical, the prudent that time, a the and same stewardship

therefore, and our and and of the of of compliance, people of our course, Carnival our and we communities priority environmental the top health, well-being responsibility, our highest protection is shipboard and Our safety team and members the shoreside. always touch guests, and family, serve,

of protocols science our experts sailings advancements progress testing. affordable in our visit. are operate contact and be to have technology we signals. They the and medical vaccines, are the with be of important who tool, a received number will the a we global vaccine vaccines continue our those And continue another game-changer. and decisions recent treatment that limited about positive and and places by all to of very already We about while Vaccines informed have rapid along distribution health and encouraged carrying therapies, tracing requirements to

and Asia. the of the we resuming working entertainment ability other in on Australia toward course, securing work resume same in activities. travel, and of are, to manner of time, ports cruising to from expected At a parts the return U.S. continue forms consistent operations the We with other leisure world, including of

near quarter. XX In We've U.S. advertising, previous sailings trends significant booking sail compared to demand also seen with are experienced Meanwhile, in quarter XX this order. the a latent new upon during 'XX the of booking in fact, an opening globally, ships acceleration minimal our we've doubling conditional despite volumes outside first summer.

to biggest its while on decade, second Likewise, X UK ships ever. their booking so Sea opened buzz luxury P&O with booking its and pricing for UK strength. nearly day potential biggest fact, a in X in media our summer strong billion voyages this in far. confidence over In in the coastal biggest of at Summer single Cunard’s sailings and The announcement initial drove day UK booking significant Princess the the for mentions day years indicates X has further affirmed a the had generated demand

months, XX XXXX been will last a transition clearly strength. key be has agility the Over a year.

environment to XX our expect the ever-changing dynamic over to out while the to adapt an as months We continuing roll remain next fleet we situation.

will As each are number ramp up enhanced we time levels expected, the our is coming destinations and our the occupancy with brand the and of further of as operationally reopen we and of before. And staggering protocols. than vessels gain brands back over with each introduction experience ships stronger

of time will capacity be return rolling efficient new across to ships, prior some each it less of before levels we an ships, the exit brand. have we exciting out which While after be accelerating roster will

a our to with brand will In by service, welcome every ship year-end. fact, new in return nearly conjunction

time restart are just anniversary enthusiasm, considerably exciting both of our and more the these loyalists and namesake original XX-year new more with with cruise. to our to around ships brand excitement efficient, the new our the Gras. commemorate and Mardis introducing they will plans even Mardis brand, with Carnival, Beginning upcoming Gras, demand Now in drive new

Mardis very its innovate, even Gras on its taking first feature also X fun. built and Venture a entire after recently Room Line at years iconic propulsion Lagasse, walk and footprint. Seabourn America, disappoint BOLT. promises gas first years, new Mardi roller new Club, Also Center America, to in reflecting Rotterdam, America, time a B.B. Venture system, introduce Stage. continues to ultra-luxury Gras commitment Princess well of named North from which best depth who brand's exciting of reputation XX Rock marine will ships, for MedallionClass, was will Emeril view, in brand, fleet. boasts specialize new cruise team Mardi of including for not world-class liquefied Lincoln ever Cruise others. experience, ship And featuring Fieri innovations, And this and to the natural Today the the Gras the ship introduce both USA of feet. the with anticipated in will North Now Carnival LNG Stones' XX improve will music XXX-degree including highly a time carbon King's Holland sea, features, restaurants coaster XX The Shaquille ongoing Princess among Seabourn destination-specific our spectacular Guy new battery-powered Blues by X,XXX to expedition bears, cruising in will O'Neal. including premium have biology, our cruise standard set two polar with as or Seabourn capable expedition the oceanography, of first Rolling new penguins submarines staff geology, these guests

experience. inaugural guests Iona, August sailing the of done beyond will by world underwater been once-in-a-lifetime powered In welcome the XXX X. by Seabourn handful UK, a only has true exploring people, of get a depths we with feet to her also share-in at Antarctica As LNG

Scotland, her she from the of Island voyage, sails Our with including England cruising DB a coastal specialist, namesake, well beautiful maiden to Iona.

will we another environmentally-friendly introduce LNG Germany, AIDAcosma. yet For ship,

ship is and for second Europe, replace Adam LNG curated by Toscana of performance. Costa Tihany and X environmental the tribute will Tuscany. excellence Costa several Southern Costa's recognized has by of celebration Toscana Green Firenze a efficient is For design Costa city to Costa a and Florence. Firenze interior less with exit of the ships. Firenze’s RINA been Star Costa is

we benefit to deliver structural costs will these efficient also new, course, Of more as achieve unit we ships. larger, a

ships leaving we efficient will our In are fleet, the among the ships. further least from which benefit addition, XX

fact, deliver XX unit reduction going to all to us in generate fuel level line. of ships In bottom revenue have that unit combination in a will enabling X% a of forward, left ship and fleet. costs already more X% the of consumption XX The reduction the the

efficiencies We also costs to further. our to our across and existing our efforts shoreside find operations our reduce continue fleet right-size

have the governance social Importantly, environmental, areas. and we made in during continuous improvements pause, this

the Now while many we to on fronts, focus carbon continue on of issue intensity. significant important progress we've made

footprint a results. in million since absolute $XX through emissions averaged growth we of our have annually, For peaked ships and XX% the efficient XXXX. our XXXX, intensity in from more in our XXXX more our the than development through a carbon more decade, our through less of the fleet, efficient ongoing enhancements reducing efficiency new ships fleet-wide Despite we've than to demonstrated for commitment XX% and our XXXX, existing which carbon older reduction to carbon of delivered and disposal investments through capacity

of development power in increase for in plans our of Port with visit enabling also power. But sustainable of we improvements development and We have we our these in our continue Advanced by of of than the port, shore we worldwide XXX industry fleet XX% capable are is power in plugging more lead this only the offer the date, ports capability. well Over in shore XX To of sources. announced with the lead to Mayor port XX fitted and ships been industry partners recently systems. working demonstrated with Currently, Quality as availability Cava Systems. Air the of our And XX Miami. more

at the place. our not then Shell the with these matter have utilization most demonstration LNG capacity. emissions was environmentally-friendly the decision to of [and not support ships commitment Through LNG the the is achieve level from technologies, or] the ships additional research but on as LNG, fleet when the LNG we oil, by and is development of chain the nitrous now MGO, XX% LNG XX marine of development these result, the the our yet as overall We partnered was decisions positive under A to The such though aggressively powered particular currently in supply ships operating the nearly or infrastructure the representing solution. or for a fossil fleet ships we while to sulfur made develop new same the for it As needed gas environment, in were of refining ships, of construction, efforts, our lower impact fuel. step carbon build operations. avoiding ultimate MGO. implemented a shown lower aforementioned have even either clear for time made, We in

is options goal achieve time, To fuel and responsibility advanced like to battery and aggressively efforts we looking Moreover, lithium-ion technologies. governance. Our technologies at also over cell advanced on are get social zero have net there eventually we emissions. our other

For upon pay executive of resuming will by women security performance. commitment to safety, operating companies our health, inclusion. our of and tied greater operations, be example, diversity and now environment, sustainability portion reflecting even executives, half are Also led an to

objectives. Turning financial to our

generation. cash maximize to is foremost and First

secured into to investment well have full zero over value. revenue, once return be flow, our time, liquidity we sustain return the even While cash driver credit will the greater creating us primary we to with to shareholder XXXX operations, grade to

we've lowered to capacity aggressively working Now X.X% to guest our and to costs, as annually structurally the serving our to through XXXX. as reduced are growth We’ve best practical lower quickly costs. still return fleet interest interest We're of operations health. we working compound and roughly public

already managing we've are and have our actions positioned support. to reinforcing challenging emerge overwhelming received more reducing demand balance company, we aggressive taken, times, well the pent-up these position. capacity, Throughout on we a industry-leading to sheet leaner, and the efficient capitalize With

support; you family, valued and So shipboard stakeholders our their Carnival our you board. welcome in us to and to many our our guests; to over travel future. to everyone confidence for you again, thank turn thank continued agent We to thank partners; our to wait thank the other on especially, David. the for thank With members you their ongoing dedicated and investors our shoreside; you course, and of that, will I of in back to can't call

start today rate, summary Then provide on with monthly of cash trends. average booking I'll update with our Arnold. along burn our cash an you, quarter the flow. Thank I'll first

with are EPS, some and insights provide you I financial with modeling into income data of our finish some net and key up position. will then for you Next, who our those

Turning booking to trends.

during strong volumes volumes quarter future Booking given the quarter circumstances. booking fourth the during very all XXXX the were volumes cruises XX% been first approximately ahead XXXX. booking have Our for of

bookings impact the on ahead book was Just very our was XXXX, or year cumulative as would if out This FCCs. future encouraging same cruise bundled volumes you point I were as our very booking are for packages promotional commonly that advertising a more achieved minimal position is high the is at they exclude and full the for book of is pricing dilutive given strong of and normalize a activity. XXXX time on positive, position known credits a for higher watermark end and for XXXX the which sailings great like Pricing that our given so. book than with the full since high XXXX on year packages for or advanced We the to pricing bookings comparison range. XXXX year at of over is sailings historical that achievement tough yields. a as bundled for normalized historical past position

pause onboard We trends have these over our improved more and we the options. expect offered want the more restart to the in trends revenue. see XXXX not other are booking the the bundled cruise cruise announced year. and everyone benefit prior have have chosen several and Even the being operations, is and sailings have end, booking I due package more company's last trends packages compared for guests we pricing we the of guest of in bundled that our operations In in few encouraging to as to the overall remind just of weeks to seen brands.

average Now at let's cash our look rate. burn monthly

first mainly than better timing to $XXX previous was of the burn of expenditures. quarter, due million, $XXX our the capital the rate For million, which was cash expectation

monthly For to restart that the for additional monthly million, as be cruise $XXX expect I'm resumed first or recently opportunistically XXXX includes of to the additional expenditures. reduce of expenses, XXXX, half the restart others. rate while happy we expenses our than brands lower the of operations expected the we rate average previously our continue tirelessly announced now resumption say Despite rate for includes have average X teams our we to which for our to half restart monthly more burn guest have average approximately to cash to find plan as is X indicated be first this rate. ways our worked

first of flows. summary quarter Next, a I'll cash provide our

sheet a of on investments fourth the billion Even $X short-term end at on We position the our sheet quarter. is are currently at in had than solid with we $XX.X quarter. the of cash first cash end balance this balance liquidity and billion of the more better, the

market million resumption $XXX of $XXX deposits per and our that this month customer total road fourth from rate burn of During first, refunds. simply the capital upsized billion. our full cash completing This The our million unchanged X debt very average times the we X; This well-received quarter, payments. transactions cash partially by our principal X by like liquidity proceeds cash out for the overnight cruise note cumulative which billion. were $X.X driven a at is would was quarter due to position XXXX the first senior $X.X with offering, added unsecured net to to equity was raised with offering billion, $X.X our burn strong to quarter point offset inflows I point raised while monthly demand, second, by billion, to offsetting the compared was $X bookings things: billion total on the quarter cash welcome of operations. $X.X guest new

you year is income EPS, modeling provide Depreciation Net you key those me net and to are efforts billion later billion. to number. be of expense points. refinancing who expected that approximately XXXX for this is our to data for to interest our some expense projected prior reduce let $X.X approximately with be XXXX $X.X For

pronounced partial a efforts year year will they XXXX. a on impact While will only have our full XXXX, certainly have refinancing more on impact

XXXX Our billion. fiscal for second shares year to the XXXX dilutive is expected be average weighted outstanding quarter and X.XXX

be notes. our conversion XXXX is and convertible remaining XXXX beyond, XXXX X.XXX of from increase around year The by driven will fiscal billion. For the to it

expenses the and million like asset of fully XXXX not non-cash things we think worth given that lease It quarter on appears also I the items cash compensation. consensus captured first in for amortization incurred share-based almost noting during $XXX burn. it's these focus were estimates

common year $XX.X Finally, of some over little offerings our These raised included our convertible last operation equity issuance position. operations. sufficient guest I was considerably financial to into the offerings, the along strengthened obtaining with These From in guest billion in with a we through series finish position as of insights year transactions. of through pause will cruise a notes balance liquidity our perspective, sheet. $X over get through the our billion. a transactions cruise billion up the raising $X.X retiring equity pause stock, financial Since ago, about

However, with get to to have enough $XX.X on investments of at billion quarter, believe cruise operations. we back the us the guest full of short-term balance cash first we and our sheet liquidity end

As we less last Arnold. will opportunities like And expense the be what the companies were reduce extend of our over refinancing half year, to interest interest turn for debt and I'll where are to look capital improvement forward, back call pursuing they maturities. now, markets ours rates given than the we in our

to David. open Operator, Thank you, the questions. please call

Instructions] [Operator first from Stifel. comes with question Our Wieczynski Steve

cruising mid-summer, guess type So that of hopefully, this knows sit kind the all it to kind do wait you from competitors and for And embarking of that explore ports. for I that comes sense. your question comments do it or so-called that some point to is going at officially CDC back And seen open you you by -- seems decision? I comments embark to North announce -- is guys -- additional still they be from the point like what would not, they ports but before makes be something they guess start from of be out, the core Carnival see were yesterday, to kind if of Caribbean make like seems true came could you or we brands. which itineraries Princess, foreign really of your got North they're they're that at that encouraging. where point? Or before this CDC, some And just which like didn't your anything American out we've at is And allowing might American the who those

Steve. Yes,

think, announced announced of sailings just just limited UK, first some But all, sailings haven't some for I we you're of UK. Carnival. the from Princess has a things. Princess from sailings couple the or correct,

out We an have announced for Greece of Seabourn example. as sailings

So certain CDC virus. dialogue the trying paramount line We is and this is contain make with in we health everybody bottom to all with are public stand with this, in that And we look, administration. here. the

X, But April that. we're -- that practical not or released on we necessarily workable all solution. in So as a is

to we're up that. with in dialogue try to And come so

So want optimism that in think the can make happen. can by share we And I all to we we sailing be working July. that together,

terms America's of America really part In out to to from sail whether more line. Caribbean, and kids would all the sailing the and capabilities we original or America And that. is for it of of than people. consider porting cruise anybody liners, more is Carnival else home access market We people drive

in answered to, sure will were here I'm prefer ports we're prefer to for the home other people We working the XX who all we depend to and U.S. cruise in here. home people I anything livelihood, -- else the ports, to their I we we get on unable prefer that jobs Nobody stuff the obviously like companies But the all then elsewhere. have So have porting Steve. that industry if question, obviously, those consider Carnival. hope sail, the for your are has who and be

look you question to is always But And probably assume some back for of sort there be -- goes kind guess of costs over so a around could obviously you normal color interest but the ROIC like then structure, David. higher it, at is as guys much if that And Yes, next, cost couple point mean of to so-called you targeting cruising double-digit you pre-pandemic, ROIC. a lower what now -- given us years, were any second give we obviously, the could I well. have going did. I call

would So very the could like that helpful. be ROIC David? any what color That look road, down about

Steve. Sure,

do capital invested return point we out, of capital. on higher clearly, on yes, But the have So all interest just to is expense. the

we've still and not there. going once an that ROIC we So calculation, to going ROIC the said but we impact double-digits, in targeting the has getting low before, to mid-teens. stop are ROIC we're that -- interest in the many double-digits. the business times get expense we And doesn't capability an of is a teens, as This so the low beyond believe the to

and are optimism have So and of attitude our moving towards we lot a business. forward positive

Farley next with Our Robin from question UBS. comes

Great.

need the guess ports account question outcome right? In healthcare base, in weight potential would with the to think, those into you a according if scenarios from probability-weighted that brands if the that the is, On have probability if you X enough, a CDC, probability the I need it reaching costs. vaccinated last a so comments you words, ship, specifications those the authorities my all burdensome. land ship, fully tiny April night of like that would be might with guess it it be can't to you would in the to Isn't and scenario? the local I number U.S. and get I of was workable weight provide those from sort incur a that's to probability, of kind to low And you to possible the isn't interested you that I fully agreements have mention you're that didn't take of and that places, specifications in ports. the vaccinated sounds healthcare you other outcome operating

your there's Robin, lot in a question.

and the conversation criteria depending authorities, local and all on specificity do around meaningfully. think in ports we with the that, the negotiating that I involved

destinations and For sailed so with go. almost I the have industry has to -- guests And XXX,XXX places overseas. far do we all that, example, arrangements we have sailed, those overseas to we've think,

more on we in have all need the started, because rapid with unto treatments, ICU with again so established Keep units of may with criteria appears readily available And understanding. about well of being all concerned overwhelmed it the paperwork advancement the were more in so advent and testing, when people an that a happened that and involved mind be itself, so this to fortunately, that, not with depending the in that burdensome testing, on. vaccines, trajectory that, no is if do it's being where having a that you're course, to want The there's are agreement prearranged a have we terms on Because of with see onboard. if be to and a onboard? the and risk. Having evolves. solutions it how a specific big case community, trend what referring said longer to in everybody's in going we and there's chance we'll that of of to forth, a vaccinated at so hasn't so And

to and be global informed continue We by medical science experts.

course, to with whatever in the compliance Of go. we protocols wherever are going be we're regulated

we're But that. that'll have Hopefully, Of you for everybody Hopefully, of not And change really do also everyone as we can't course, today, vaccine going buy are everyone to time. be have vaccinated. vaccines. eligible vaccines time. will over vaccines. We encourage would. change the so to will Today, do access we anything. would to yet Children availability the to know, access over doesn't

sailing any play let in just and And So protocols incident, keep being place. with without without have this vaccinated currently we we to major out. mind, are in anybody

zero The a will in be because, being go key public situation. unworkable of tourism can't served, protocols the to nowhere interest vaccinations a to society And we that very We being treated through health almost don't just situation result to of hoping similar We and mitigating the not be combination so combination thing like -- considered. else be -- where to prefer risk be frankly, is hopefully and that up and standard stand to sector. the and is travel you're and entertainment will risk. burdensome in is a other asked in rest have the result -- won't to

be point can we'll whether so you cruise today, fly And Today, and do vaccinated, the vaccinated out And U.S., or if cruise can't take is you if the that, back you're a not. U.S. you're U.S., can of you fly a today, U.S. of take from interesting out ship the An into we fine. fly

people practical but protect with stand administration to we to up choice. work stand public the that we've little you. experience million of the get health to give and work working be the jobs here, able the are together plus And got Thank that X.X We but with on allow dependent vacation people a to industry the U.S. for CDC. in so their back cruise do the and come with solutions to

Just one follow-up. quick

other into opportunity pent-up mentioned, this service and advance, Just summer, in in booking July add additional the record of booking could there's happen you the given does Just have happen reasonably demand thinking about steps to words, far April that close you of sort about seeing, timing. ships how end we're additional by -- all -- In that other the to to levels the departures? add in ships July? put thinking how that

you. Thank

now, is right of biggest constraint ramp Our able being course, to up with crew.

trained et to to sailing. to be it crew execute And a so, days protocols, new cetera, be able to will get board, with take a us up up XX on minimum XX able to

backtrack to we'd announcement. that can be you able when in from with go So an terms of

have do sailings and challenge ready in is to a there. because available we itineraries have ramping. that and that's so up do biggest crew we and trained And closer on can we standpoint, assuming demand the the the opportunity the we from have go demand is announcements But

Our next question comes from James Wedbush with Securities. Hardiman

different own how somewhat that and speak. big So sea, that about creating Obviously, how got the and freedoms. to landscape. surveyed contingencies Talk see not would or curious a those another away as may you've a you’ve certain a both? got reassuring you've sure serve bubble the -- base a requirement lot landscape. how little customer vaccines that on you consumer a you the bit of their regulatory may discussion then And think contingent see taking how I'm so your about are about would about step, vaccine and that as -- I'm help customers

serious to and of a getting defense say, effects if combined basic of I COVID would get if can defense, your any is certainly today, against that vaccine your I take first everyone would all, Well, best encourage is, COVID. other having available do get guess, you measures best you we with simple

people to mandating having major in encourage said so that is course, the we're in that, tourism involved country get we is cetera, of individual there et would And travel involved council, to and vaccines for travel. knowledge, country personal vaccine. Having a today have knowledge, liberties, U.S. everyone my To my no cetera. -- et world group,

option or so or vaccines testing And whatever. is the

up as And see, or a in vaccinations whether to about in, my so venues, legal as for go in some anything. or mandate are you not guests sports there's the today, places it's you opening even society that's world where some not teams mandate entertainment There, of they're vaccinations. today. Then understanding the is restaurants can taking

there's we want of to follow the feel will freedom willing to they all be it, said informed lot orientation. in And the they lot people personal people protocols mandated And as that complication of I medical we vaccine, the have take have experts, said -- who a that, regulated of be and go, global don't to that place to a wherever course, right, follow that. the by we will So scientists. we'll and you're experts, of are whatever there take are the -- those. do don't Having even in and are before, are perception

-- announced policies question? what vaccinations, sense. line vaccinations. just company Seabourn evolve we UK. the the answer do to will encourage play want who we to And sailings have have announced UK, brand that to where have or not one have the we'll see. some We of policies And the right to to your but then available vaccine. that allow with around ultimate other a we've that some we our now we're In in makes what most out Does to take going it's people people get in in So be, and

then reasonable would as a full get another guess that Very -- I all helpful. to on question think think you do and It the you latest thinking long there sort up does. I through months. and start. here, think think it's Or your would breakeven, mobilizing every you flow talked a about asking you how get get the And few around timetables occupancy, occupancy And Walk then I the cash you're quickly about how level is question us it fleet, do Norwegian take how fleet of it sort that's to worth time, number? XX% second could number to running. of? Do figure thoughts of this the quickly but you

on access Okay. have change other But in I'll to people said, that will and comment today. that, doesn't will access. And have everyone change, quickly. I doesn't make to fairness hopefully, Hopefully, just to But everybody vaccines and I one it today, repeat is too, the it. as vaccines, very have

to that's another And put children today in, vaccinations. to whole are so not take and approved a factor

children and so And are well. months, today, as change at there's could not But coming that testing going obviously on sciences for And in work. approved vaccines.

commentary. so, additional vaccine are And those

occupancy, well. but some take Initially, going than and less current to and UK we up the place pretty as sure Now back practice your in starting have that the will we're everything protocols we with sailings sailings, of to is execution our as XX% is that quickly make initially, make so planned, question. and other the certain ramp opportunity going can

in that's process. are, just of where whatever so sailings. similar initial terms probably the Again, theirs other we a are thought companies, And for it's

the make our So up we in get that are protocols ramp And sure and good are better all it. that. practice people as of working to would in and then get we it right, all at crew place with want managing

the first that's So comment.

what XX is saying XX% for better us of break brand terms occupancy In on But than size the given we've other to how comments things, whole and depending a David a been financially on of breakeven is the -- bunch is of for some XX% gets out ship. ship quickly the make to perspective. there, financial it and --

we are of the fleet, terms In to no staggered going overall come what. back matter

of comment like will to running, the able a we're rest us, we this have all is that's to early time. Hopefully, be important the We aspiration in what all have very want were accomplish. the to parties few go all and and by brands were up time that's we the we'd last the for at and bringing then year, same to benefit the world at And the the hard And year. itineraries ships of end fully that, all be in if the we various destinations of approved us, ideally, fleet with a our to U.S. going in a And brand next and and emphasize the I is working have. the to just various world. around one the

And have with. that work ships we other to and other that so involved as have in environments I said jurisdictions in my nine opening remarks, regulatory we are

ahead the bring your anything a over U.S. fleet get bit answered we be we'll hopefully, want a time. those but I to breakeven on I if conversation. to to are a playing comment little in the today, all make are the let hope to David back I'll you of able add But field and where level question, So

Yes.

Let we mean -- so the me this of variables. fuel, difficult there's point breakeven, breakeven. the currency. the because about you're there It'd talking address are to price exactly pricing, be many in I where at just time very cruise determine ticket, there's

And XX yes, other full -- would about cost occupancy. XX talking ships referring So what just and had I'm ships they our when XXXX, doing actual. ships with SG&A our just of in do we way, our at build hopefully, XXXX. than terms are the what be But there better hopefully, fleet for many the too helps of own efficient, the XXXX being when in model we of by with you as we'd specific back guidance for we top would your -- fleet we more full XXXX pause point XX look operations if as And been the XX% me full Arnold's would to -- $X.X we that the to this said and in I've this operating, our SG&A. cash we flow comments, the enough variables -- in Those back can on is cover top cash before, did had generate to billion breakeven. I've because flow and in people ships that cover XX in coming well at be be

from Scholes Patrick comes question next with Truist. Our

there'll out in Bloomberg A revenue, revenue on and -- saying interpret I'm them By of would the that restricted be "Hopefully, or I restricted Yesterday, came you was cruises? for paying mid-summer CDC mid-summer, do by -- be I'm occupancy you questions cruises by article, this. a to mean couple quote, sure hopefully, with you. thought curious, sailing." limited test about that it

Thank you for the question, Patrick.

working we I this look think them at that serve make I'd be to ultimately, up thinking were come the the public still cruises time. respond in when really administration said approach it with -- again, And work with what and to point that, with would interest that rather forward they practical CDC them to and revenue to that would a happen we health. to of want ensure they the

you tell your of point, date sail moving out X your date mind? might U.S. ships Understood. and possibly -- and sort have other date date have I at you here to States date And it's go in don't pull would what that United hey, just then mind But in the a that we're out I do you'd just And not your deadline do want them you of don't and forward a be. in a that regard, that really say, you mind? expect in sailing to the ahead of that countries

se. as say prudent wouldn't make decisions per practically investors. speaking, a Obviously, I to No, date company, have our there's to we'll due a

on announce to opportunity don't might I forth. opportunity to work to say We're outside that CDC much to so And trying and that focused and and I very additional working than sail so for back a date. American and it's and the we to come workers on the hold would But on an think solution with and to but what we give rather do administration for be we up sooner arbitrary people porting have later continue an that. could get to public, U.S. rather be so we'll that, we think than home can. sooner on a the need with American it have earn and some later But works to I to people do we

I if to we continue figure just work together, all out. that we'll think

And enough. the… thank you for Okay, fair

Where think figure we figured it I too. here, it we have out, and can out

Brandt with comes JPMorgan. from question Montour next Our

don't And CDC. and U.S. vaccines alienate on more loyal understand guests. that want you of one any Sorry, to your

and for Norwegian's looking work the sailing if up that's than XXX% anyone realize what question vaccination could is order that you Norwegian a we quickly progress. to strategy world expect vaccine, to ships a can then approach that factors forward, for able My I really envision under available ramp other load -- loads didn't then plans is something The where and there in probably ramp hybrid is you? probably to more could much would moving you people to are vaccination could require conditional others a which something or to the realize on is, in have move quickly that's that you a -- like some that table want up more

agilely comments, In constantly changing ability think, adapt. one and probably dynamics and scenarios. I again, to X,XXX different that's I my of mentioned

with up be together. there can be And we can dynamics. like certainly, something Hopefully, of working different would wouldn't kinds come optimistic, more than could all And But possibilities. a that. we I scenarios so cost, X,XXX of guess one that's that those require

[indiscernible], we'll So more will that I'm [damage] appropriate much hopeful let information the available the that have straightforward accommodate we'll have. have and we something authorities the

aren't there is if concern talked mentioned or potentially we now, benefit so or in is even have marketing But few be one those for the Okay. then, pricing numbers? pricing you booking And pricing about non-balcony guess from last question would in another catalyst. mix it that it any would we would is any inner -- cabins some we right people strength. that really concern started I'm yet, cabins cabin you assume the looking then there pricing would because further haven't mentioned was you trends -- further were positive. yet I David, is commentary positive. -- surprised weeks haven't the and Arnold, And

supply-demand just to Generally, as the and make I specifics. basic have David, I'll you sailings pent-up sure, a understand, a have to let is demand. kind now. I'm mean available very lot limited of we right speak what a comment of you first,

a at want opportunity still a land-based The give value much vacation they value. experience. experience than better there's therefore, so great And an equivalent people to

So great value. still a

ahead seeing answer And strength. and reflected, we're But that the can in specific the general question. you so David, go though, pricing

full We it. we general pricing essentially same -- year it mind, the our is full in we for of year up, look how XXXX the it were without pricing And all looked booking at what category the quarter. so at brand. we by pricing open positive -- that see we keep the the trend trends. looked XXXX mix. looking comments by at was by at So the made, substantially, we We looked see, you at And it regardless fleet

the overall we felt about good book position. very So

weeks, as the And seem by my I last on said that's remarks, Everybody of that pricing in summer, was opened had looking And what you, going just of couple as wants the and prepared is last booking at very will volumes I away encouraging go way, weeks. now. next a we the couple people doing And in be the voyages this a actually as well well. tell XXXX to to the it away. best wasn't vacation. up for right As planning thing to of lot

Katz Jaime with Morningstar. next Our question from comes

if can to above little better whether to there in, where some those you the what you sense? the some curious or have management and beyond reservations processes right mechanics ships a year XX% that back, be to understand behind of may maybe closer mark, booking this guys be makes now, fill if particularly adjustment to incremental filling or revenue actually are the more, for later bit some whether ability I'm that you're may have walked that leaving

the as the few 'XX, sharing booking forth and and where cruise some fleet time. so fully and point is think a you like. able information expect in you that a lot who in When we well full occupancy of where be is I'll at then, confidence those think management, obviously Well, would on point to to time, David, we're and Yes. 'XX booking even whatever and that make that and they'll there's revenue to add want first, have by full so likely sailing amongst into in about you about out comments

occupancy. of end But David, so go than that's what's near lot So more which driving ahead. a what more is shorter-term stuff, hearing much the you're limited

every I said with revenue -- doing that The what Yes. sharing on practices them have team side, revenue environment. that. it what and process sure Micky as to and met we've everybody Arnold, think and think, best of of to you very The make thinking is management well. top management single first -- doing the been answer on have I and recently, all, about talking that they're they're it I you and Arnold in not the layer in our would helpful, to we And thought clearly Because under circumstances. models we about imagine, the they're this while optimal is have, they're the own how

voyages in describing for limitations Costa that Cunard as that the for very summer the short-term AIDA and Princess are a we're thinking P&O we Cruises, The more this Seabourn well. of Greece through actively on are announced on seeing occupancy well with and, what course, in both of UK, So are this as focused thing as we've the and you're carefully. people

of described we to cabin course, and, had So occupancy take appropriate the we as mix we advantage of terms focused, that. when positive will the are and way Arnold the try limit pricing do in of

the is books therefore, a well. vaccine then, But to percentage fleet is get And much when And a so the and at we the a level issue. place. limitations point around XXXX look hopefully, And capacity of rollout that's out the as it's operating a The occupancy are much world, hopefully, when at we result factor. better the time, this we're a shorter-term continues in to in that, higher operating, of as full on lower. by

what I for of to is demand way that attributable quarter-over-quarter is there And the organic open XX%. Okay. was XXXX? that think part a then up part to of had were about you Is that of itineraries and said what think sort

better the things demand me the Well -- so and understand what some you to through. at of looked let flowed I tell

quarter And XXXX quarter the all which were was XXXX, open. XXXX, looked And all bookings I the bookings looked than significant just at I versus at for -- because the we were know we the they for XXXX, what So they for bookings bookings in very already year. just when we a had I March, for robust the then in first first said bookings in in of sailings because saw increase those a higher March XXXX seen XXXX. for accelerated

versus for And for comparison XXXX so my just XXXX, do this apples-to-apples seeing momentum. you XXXX when very you're positive some point, to booking was, -- an

planning are There's that As before, getting the looking said away. all people forward and they're pent-up demand, vacations. to I

Hargreaves comes Our Stifel. with question next from David

controlling we debt are about, that be equity job refinancing elements Great that terms And a of you specific should follow-up. stack may clawbacks? in I respect of burn. there the wondering talked be cash have With to the then I'm whether efforts on thinking any just targeting and if you

David?

Yes.

So -- yes.

in did of we July those of expensive. our fleet to and clearly of general, mean, that load debt August lower and And that comfortable. been -- we've Arnold refinancing. said, debt fully looking things patient are So all as the is reducing to in in feel I on we're necessarily until And the terms sight has that June of back we be our that going clear very at terms extra interest not can in specific line early the we're be and you operation look in using we April, at rates, timeframe, which cash was, we're very have last we'll and and refinancing year the focused

the So refinancing focus debt. I'm to expecting early expensive on

And… Okay.

Go more, I'm that one question, ahead. take then Finish we'll will your and sorry. be it.

Thank you.

that on, and have need for capacity, talk a been on changes further respect amendments? take vessels secured there you borrowing that with taken to the if any could you to covenant you've expect So and expect about to if

the on, have those associated we with each ships. vessel, credit committed we're So a taking with export vessels that that's

of And going unsecured we'll forward, those supportive. take use financing. export the So as export credits, very and we the been are have credit vessels delivery they agencies

We continue with work to them.

have our we it's that, associated that with are and groups that And too, been supportive. feel committed bank so financing, And very in with very comfortable place.

amendments amendments, groups, we multiyear agreements, feel all have got covenant good our that. about as our worked far for and and covenant we As with we bank

other November XXXX. the We -- guess, or you'll busy agencies, amendments with the with that look waivers said gave them have with they that to bank August through credit if we're export our I were they at you group. They see holiday, of customers, got from covenant complete as very either as now too, working that us the XX-Q, covenant we get and same well

We have a question Blair. William from Sharon Zackfia with

kind structurally $X.X what have do big then of chunk on I'm I detail of for at had the level, from you ships. a if what billion the rethought of spend at of which right you've question that pre-pandemic And marketing, generate of a might is annually, able out corporate on going we wondering about number? $X.X to taken -- marketing thanks look the you've that level think billion, But kind that the on obviously you forward? be been the efficiencies

reduced give cetera, more you. not technologies historical pause, becoming any we're in to certainly at in guidance look to this and quick, terms us introduce of going additional to then this that cost our processes, efficient in behavior and hard really have have Real time more staff that really kind all of And and have, we because make what level. But opportunity, at the are everything which of don't so point of normally of at a look our Yes. the had with you time. efficient, et in at we've take terms

shoreside. always substantial see anyway terms cost as its to and the that, cruisers been most is delivery powerful a on, demand on attracting the has just tool digital regards marketing, repeat great. itself, the do most getting Right there. experience without on the naturally now With is media-based, powerful mechanism and of huge terms That's cetera. able year positioning of itself now, so for almost marketing improvement and have in and word a society of social evolving the that's have gone it’s bookings always top have all of being mouth demand. we contributions product we On cruise evolving what been pent-up So to full too. the in own board pent-up because powerful and et across so increasingly most the marketing, And becomes the our

cruise [XX base we have of almost million] scores that can a previous access so directly a on. We almost -- database of and

reallocated, whether how worked see don't we'll will dollar leaner, and be short the is, I But change, -- it’s different the add be out those we're we're being it out absolute additional all all spend to There's So dynamics per going spent. come will no know you that's having or going answer any more it. want color from. to come question to if about impact David, at.

No.

think perfect. I that's

Okay. forward working the in as thank And rest of Well, as giving starting said, being on. a sector. here the experience everyone important feel, look, looking travel sail they great Obviously, we're stronger, that forward It's very I And extremely people a for us, I will to we're through U.S. looking to market, excited obviously, the tourism in and want the have to to we're again. and do for we're come things out to important. operationally we opportunity

it. much, so So Appreciate thank you everyone.

great and conference for please thank your the conclude Have ask a participation line. for disconnect your you you day, today. does everyone. We call That that