Carnival Corporation & plc (CCL) 24 Jun 212021 Q2 Earnings call transcript

Good morning, everyone, and welcome to our Business Update Conference Call. I'm 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, health. on return to path operations we and well a Excitedly, are new welcome to guests onboard are guests, we that happy interests are as to loyal is home the and compliant very to offerings of touch serving guests best serve destinations to the while our diligently continue welcome public working we have back in our as of in ports all we fleet full to a that and way

So expect Carnival of a this for again Xth fleet nine later over we Britannia, our far, to eight includes, represents we've brands UK the P&O announced on ships our of relaunching And the once half of capacity resumption and returning that week of sailing in of States and Horizon successful over XX this United very operations cruising with to from by the guest year-end, July. fiscal operations. the Cruises across be, what cruise

ships Carnival other joined Horizon be the the in of by will States nine August. fact, end United In by restarting

evaluating throughout health, safety shipboard serve, Carnival periods communities a flow of winter highest the our serves on public therefore, Again, priority the shoreside. and team environmental options fall wellbeing and of responsibility, health. with in and is and top our members cash great course, additional our the guests, compliance, our family, while of and and people that of maximizing are future always our touch guest we in a and the protection course of deployment focus delivering experience the way We a best interest

up while the before next resuming be a full Australia on full operations are well as to which all expect just operations physical high yet. deployment of guests we to will And we our fleet distancing historically levels. be our ramp portion also the by visit near-term, continue requirements occupancy and of ports limits season will year. important in cruises options We of impacted we we In receiving predict to operations, the can't by impacted we continue pace Asia restricted work our XXX and toward near-term, the not summer also

people managing more treatment As without operations course continue advance continues, current of vaccines of these virus operating to of will as resume as have the will this even to receive we to will we mitigation and as also eventually proactively sail pause, the an and restrictions. been able confident be company. evolve, we restrictions are spread Throughout stronger

through capital. growth as the portfolio annually Our that's down ship strategic the transfer our our line, and improve roughly we European ships transfer which to from will cash has Line X,XXX return have from combination capacity ship optimize boats Cruise cruise a favorite Moreover, Carnival well compounded opportunistically lowered decision invested to maximize Continental to rebalanced XXXX accelerate the modification as our through our to our to XX pre-COVID. of America's newbuild brands current of XXXX, and exit X.X% the on generation from exits X.X% environment, the schedule,

welcoming beginning every the time new the Nearly will brand brands guests new more first enthusiasm, with have an growth across Carnival, around demand even and from drive on our ship Mardi we our introducing spread fleet benefit and constrained, to namesake brand of for demand new overall exciting roster pent-up ships is While will soon Gras. the a our restart excitement capacity plan. capitalize

featured know our And Gras began is Gras, Rotterdam, view Morning very Statendam. corporation, thrill advent and day another will the XXX-degree first-ever from the it Princess on its but has advent Now, MedallionClass BOLT. successful world-class Mardi it at and that. ship sea, Koningsdam said, trust America, of of small to will Enchanted to sister me, submarine. welcome Seabourn the been Venture honoring the is has the guests America the and personal the indeed modern will ship Premium experience, including Seabourn I the aboard Recently introduce Mardi a new no expedition roller many Princess, coaster Mardi new that brand and to Holland ultra-luxury address the brand Nieuw cruising, with ship, of ride. Good team spectacular welcome features, task challenge successfully Gras does original just new

August inaugural For the Iona's UK, we will ceremony be X. Iona. for sailing a enjoyed naming phenomenal virtual

structural we the Costa costs X% coupled consumption Europe, less-efficient Germany, introduce forward, Costa XX enabling efficient. in ship combination Again, successful new ramp we XX% unit AIDAnova, unit for among bottom our points several line. the Toscana of reduce ships. to we achieve fleet deliver exit to reduction the operations. to which to the efficiencies We find LNG-powered X% to fleet Moreover, our as with well larger existing premium going shoreside and will reduction as benefit we've structural back AIDAcosma leaving the streamlined least of costs across more ships up due level a unit ships to revenue these of will generate mix system will in the richer replace percentage to operations our full as ships us more-efficient were of fuel cabins, fleet, and in further Firenze cost a and our LNG-powered balcony to which Southern a which highly to continued planning these further increase benefit the enjoy from priced XXXX as also and to exciting will revenue X we new For a introduce for will fleet

other channels evolve continue compared efforts to earned to cost advertising relations-driven Our media and heavy traditional digital public as utilization mail higher and direct with such of lower cost channels. as

the exclusive Cruise namesake viral and went our captured for The creating and initiated the AIDA origin in both AIDA return we public number content such news, celebrated with corporation. as opportunities news Line that Carnival XXth of outstanding an both the with cooperation anniversary their anniversary the to and one brand have three brand. front print Germany's fact, online. for continuous and states our conjunction In relations up, newspaper Jubilee page service. coming onboard Also, we XX-year our

Of course, we of to leverage the excitement always around attention. newbuilds media draw

finance improved potential of of acknowledge has ceremony the over a impressions, last ago, spend, an at acceleration globally, this our in given far demand reach the Gras to despite time. the experience Also, helping our very new record-breaking confidence indicates arrival just to attention. our booking with yield, introduction strong Iona aggressively advertising cabin, same by more-efficient from sheet. interest see So opening primarily from of the our initial including potential XXXX for and sailings David driven in team the we just EBITDA continue capturing replacement significant mentioned a exceeding that UK's receiving vessels. for pent-up of structurally media are any media U.S. trends entire along of the couple prior the the The future virtual the for growth the the captured in we I higher of weeks coupled premium of UK in Port working naming latent billions in we attracted event. coverage, successful richer costs time, benefit Meanwhile, earlier And to want potential revenue here with for media of And lower and extensive Bernstein XXXX, our less-efficient affirmed balance Canaveral costs. mix lower with P&O efforts the month, with revenue demand demand and ships naming pricing to summer. us vessels Mardi their minimal to for to smaller, compared larger, I manage new strength

release over continued As the a we press successfully that $X.X and first interest billion million, of $XXX to in opportunistic is savings this the company efforts. annual undertake. this make loan we've advancements importantly, said our and refinanced in many of we expect sustainability our refinancings an future to Also term morning,

which week, the XXXX A sustainability is this important earlier of focus week online on carbon emission you fact, press published and our reduction. at this our issued website, in of emphasis find the those release goals can and sustainability efforts issue sustainability www.carnivalsustainability.com. In XXXX our continued earlier sustainability our aspirations, key we

our as industry-leading efforts absolute develop Over examples we natural carbon our And emissions of growth that since on will to previously plugging-in capable this in capacity XX% and level new over is such our And of fleet Shore below liquefied shared, time. technology. includes despite while port Now as of those peaked remain in XX% gas. and we XXXX, it Power. capitalize that's as rollout levels

capacity under by either We currently have in XX% nearly which construction power fleet ships or of will our XX fleet total LNG the XXXX.

benefit of XX profile we fitted ships over Systems, net-zero with our are work emissions time. Air as emissions aggressively addition, technologies to and will Quality we continue In overall toward explore Advanced our new which

During production, waste these our onboard Food dramatically we to the units have honor initial person waste taken on food among good inclusion. consider many goal are social toward our honoring much diversity which our continuous XXXX. our waste risk commitment this largest areas. XX% global important are environment, to our to environmental, and commitment efforts. waste and of warming other pause, We of of improvements Among reducing by to help wasted and progress our had will food we where governance food reduce to and our to needed the is any we waste in fleet And efforts discharge. per place is measures reduce focus our digesters made we've and non-food another contributors made food by impact to mitigate installing

a our have countries. with hailing crew XXX from already we Now workforce nearly diverse

executives. we Glassdoor enterprise. a Award one our to, working America's Agility they the for of strength by recognizing and and Large recruiting diversity We XX for to the development the to companies are places well America's striving are are the the the company at for make Employers have we where all XXXX, Best Employee's Employers and named are individual recognized been We've contributions Women. key as employee diversity of months. but America's Best feels want Best winner every rewarded striving to Therefore, as by over also be recognized areas of last Employers to our all proactively led they and were engineer half greater addition, as levels best efforts work, for In in aspirations. has to women we our been Forbes realize for in and still career greater Choice as to their contribution operating inclusion those opportunity and Diversity

rollout dynamic We while our situation. ever-changing an to to fleet, the adapt remain expect as to environment we continuing

of interest public are as working practical fleet we to still our the aggressively So health. quickly return as operations while best guests serving to

optimizing well aggressive taken, the reducing positioned capacity, our capitalize on global a emerge to more-efficient reinforcing actions position. pent-up With we we've to already are portfolio our industry-leading company, leaner, and and demand

We secured creating flow Throughout full to return shareholder us full grade through And to to operations. received will these driver liquidity time, credit once over challenging sufficient cash times, we primary be support. overwhelming investment the our see we return operations, to have value. to greater have

our ongoing on their and turning point and us for in welcome course, their shoreside, in support; shipboard that, get call thank and our once you family, members; thank to have world; stakeholders countries guests; to to dedicated so and crew to future. to in who you to to prepare are I We our With thousands restart our with work our the our with thank partners; of our global many to travel over agent thank many to confidence again, numerous the you valued successful of you a have will So back lenders can't the health investors our board. for members us states agencies communities efforts; partnered to thousands David. restart continuing who thank worked this vaccinate who around you us in wait you continued to turn and to tirelessly to thank to Carnival the port us for governments you of thank and other of the and everyone

a Arnold. then with with provide I'll insights and our with today second you, up of Thank along our position. then booking into I'll financial an update our monthly some quarter start average cash on finish cash trends, rate summary burn flows

Turning to booking trends.

pent-up This strong quarter during for by long-term driven for is strong demand the the volumes a XXXX. of booking are as with as both the potential improving. of the all volumes restart very volumes the the clear given quarter. have close-in demonstration market. bookings second for was recent the announcements clearly well cruises well cruises been associated for XX% as booking as circumstances first Our ahead Volumes future were and The during XXXX increase booking

historical they out promotional is achievement tough advanced booking This and known high-end on is is strong I comparison bookings a but positive, book as great a at historical a Just pricing a number like that that for watermark yield. for part was impacts position very XXXX was with Cruise our same for book on activities. pricing FCCs. of which our bundled Pricing strategy higher is by of were in volumes time of excluding more position dilutive on and sailings, given XXXX the driven XXXX, range. the commonly positions achieved the pricing to Credits it a point our XXXX XXXX as given for full-year cumulative very as brands, minimal Future of encouraging, ahead sailing bookings advertising than high for or would at the full-year our the are book the

the the year of past bundled everyone to in and our I In will operations, end, sailings guest in package booking the so, not options. due and trends company's see remind these we benefit pause the being and the we Over packages want that XXXX year. more have to bundled have or other to for revenues. more trends current chosen onboard are just prior the offered, guests compared booking cruise and

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

the which and month, than of some received due better mainly ship previous The the was to sales cash half of first of was end timing forecast $XXX per other $XXX the our of million. burn working million was small second before cash rate For just improvement the XXXX, capital quarter from the changes.

quarter, ships have forecasting third that cash the the positive will quarter. from are the cruise flow operations during During we guest XX

operations of ships many do However, keep that not in late those the mind in begin until quarter.

Berth are called only Available Lower will As Days or third they for a ALBDs as quarter million. $X.X result, the the more commonly be

will quarter our operations, previously versus factors. However, the anticipating in monthly be of ALBDs sold an several third have we cash as discussed, guest good news, from the positive flow these rate XXXX forecasted first cash cruise the Despite because we third increase all not quarter are half cruises. of to positive burn

will of XX accelerating are cruise be have guest we by XX operations as First, announced restart in ships November expenses fiscal year-end.

driven number higher timed of the be a third, quarter. on future will which third payments have the restart. expenditures capital And Second, to progress newbuilds, by we were be paid during

third close given a monthly burn quarter rate. the as with associated atypical the third expenditures them of guest anticipated, announced the a All the between were amount we as given cruise of restart, cruises occurring capital the of the Because many result cash of projecting now operation all been be as expenses so these booking quarter. expenditures in the revenue difficulty short restart of the are window quarter and the and of of providing timing not have forecast to exact in these that quarters well will announced departure, third average

you, that For than quarter. third were during that on model our our those who will normal future results, margins be margins forget given lower trying less the third anticipated to the the quarter level cruises of is occupancy of don't

liquidity enough to the balance we in cash and However, XXXX. billion of of short-term investments we cruise operation to have our believe sheet, guest full back it with on $X.X get spring

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

somewhat by burn burn billion customer payments. in cash $XXX average During total And month cash offset additional times This million three. $XXX primarily $X.X the was an rate used a of our second increase million billion, a debt simply deposits. for of was principal quarter, $X cash we per monthly

sailing customer resumption solidly new operation. During road on deposits the bookings sign of receipt truly cruise quarter. payments cruises from impact in guests second driven guest quarter, the exceeded milestone the a is full of are now on This we by the welcome a current to the refunds, and that of partially for

insights will position. financial finish our with I up some Finally, into

Therefore, we cruise maturities I have are expense. pursuing to we to us interest As refinancing said opportunities to focused and guest operations. before, back believe reduce get we full extend liquidity sufficient on

European approval otherwise company. Hermes the provided and would maturity second the these period. the completion third profile payment three the deferral I Finnvera Debt quarter. the during for $X in have the principal The instead transactions will deferred of loans. thank be transaction, principal completed the During demonstrated been export everyone due approximately Holiday have following involved quarter, these should principle of in made of support billion the agencies, toward to SACE, that to over one-year a want extending the five-year credit over transactions that to period they payments of These

annual market team. and ever which on management loan largest plus is transaction repricing. and interest $XXX in our was Euribor is Euribor by of will of future This than our company before bright points affirmation a per in an the our margin rate repricing this from X.XX the expense was last than Clearly, achieved an B was million the investors transaction. of less an dollar B It repriced future over an X%, B change the term by percentage reduce term confidence margin $X.X loan addition, is in In the facility incredibly B. portion margin unusual facility was It before The our U.S. term plus margin the of loan X.X we of which percentage oversubscribed, month LIBOR repricing. interest which term well successful is now loan the now portion billion The loan loan interest term of LIBOR points has less rate term a was has of year. any euro a their X.XX%, market.

be our the reduce meaningfully banks capital and forward, how turn to additional refinancing given opportunities debt commercial time. been, we back Arnold. the interest market investors over have we and call over I'll will to look maturities And expense extend our pursuing As now, supportive

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

now from begin question-and-answer Farley UBS. the the session. Please with We'll Absolutely. ahead. question go Our comes [Operator line of first Instructions] Robin

XXXX pricing would Good about only Future kind Credits and ask on Great. a wanted of like your to on your it discount average morning. maybe excluding impact Cruise for cruises of to XX% bookings XX% Future Cruise that I be comment are seems Thanks. It single-digit basically ahead, pricing. a about Credits. low being

the B that is, given lot of is for checks question all potentially I sort of the probably from sort – ships a up by XXXX? if for maybe we impacting that is don't be pricing Thanks. that my ships XXX% filled? Cruise the cabins ship Credits, ability and to bundling at So versus levels of spring, yet that's the expect to Does impact have of give Future point. XXXX if the that, of of included part showing so sort strong pricing or on XXXX a – as that you you the get then that guess not low you question very but And be price do would more pricing little all just that not is a in service occupancy at XX% X%

fleet. pricing we're of let in but planning the you, have is I'll summer, morning. generally sailing the Yes. fleet Yes, the detail, as David point you terms Good environment, out, Thank returning. fleet next full before Robin. to the some add strong

serious with still challenges world. we around Of the of pockets of what COVID-XX. still see pockets There evolves course, and – to are large have

David? the is have to summer have how and unfolds, see all that fleet in we'll to sailing but to next we strong. So prior expect environment pricing full the

Yes.

strong, environment when said, remember have the as think the of portion we a Robin, on XXXX Arnold you about only So books. XXXX, is but

meaningful a mentioned impact that bookings that represent a is of and part rebookings have. the number given larger of XXXX, as result you're you short-term, for bookings FCC the in X%, the of the the that, overall moment, actually seeing So at the number we than

from lot canceled some same in of in thing as were and rebooked that XXXX. to people other rebookings is did people pause into price The at cruises. XXXX XXXX keep there – we a as We mind the

is FCCs the for what – a than is impact larger you the had bit indicated. So

when continue impact to we a as smaller expect the of portion and do the remaining XXXX, XXXX. FCC portion of few done, those will is a the for say, the I will become said will FCC on that and book I percentage ultimate just all However, rebookings total. points be final smaller And yield

Thanks. helpful. very That's

pricing And a so – to right, of kind no right the more taken. because move have the lot portion your Is the reasonable a FCC of what timing FCC. now you on and new mentioned, is that down will – as it when book, of the of as bookings understanding you rebooked that rebooked lot are think that

is will that coming as of As next a that be total, the on strength down ahead new those move it reasonable percent seeing portions based year? bookings in XXXX of levels price you're in

Arnold really to – early environment pricing a we're we're guidance. not days and the in give not So position said, as strong. it's But very is

overall have pent-up point. brands a good give as premature position. our there a to all we at raise feel in I guidance of for point volumes me right think direction. done time. price been do the lot and about have we There's Booking Our to demand said increasing signs these But it's so this and over lot very out

queue my for you all. hop questions. in the Understood. back Thanks. Great. other I'll Okay. Thank

Robin. Thanks,

up Please ahead, with the sir. of line Farley. we Ms. Stifel. you, And Thank question next, Steve have from a go Wieczynski

guys. Hey Good Yes. morning.

your a are first are to of lot some out bit like is, So capacity guys that mean ships two you I clarification, would operation fleet a and to. I hearing is or the I by there getting we spring that I that normal mean levels? think number guess ships back by going investors the a little talk what XXXX, about think operating there your at I'm actually operation of in question be guys And with that does mean of actual does different you talking full I of be feel – in confusion all ways. well, when I

the for Thanks question. Okay.

and we're to that. have to ships hope we'll capacity also got go planning can that full to months capacity But and be hopeful optimistic point many that we've for all at at of we see. we are definitely, But all, time. we sailing our be at in fleet. that are with But of First here

Okay. Got you.

question... Second

thing. out keep add I could those cruises mind fact voyages, if the on and different vaccinated will that capacity the for voyages. of there, social point we Steve, requirements I guests. have, are one distancing in a we that that are have out voyages There no requirements or number that

that So of mind in out just you round as kind keep and project the future.

well Okay. second David you are And there if for Got is guess, us at this just bit of out are give of state Thanks, way you confusion kind on you terms to you. crew update of that. as can to an Florida in wants a the give then you wanting the with in be question, kind most of guys of versus terms of your Obviously, he maybe us point? guys where there passengers I state I think Can of and little an and where Governor the this at work update you guys the just point? vaccinated.

Sure.

XX July Gras, starting in then looking forward brands But our will in Florida, Europe here only Mardi it's along know guests Horizon, and this We few exciting XX welcoming be people not Horizon during July the on XX for sailings The Galveston, X, had board. on the we're starting start have Breeze in at X across on of Mardi the Vista Gras First our of Miracle Seattle, but July with around world. all, we over from Carnival other our all in in really sailing and to Florida as have looking a on July pandemic. to Galveston, you us really

time, a of jurisdictions just and really So and how perspectives a intense different things there of on time lots an and lot exciting is is course different should an go. of There it's time busy noise.

we looking our to on are where we're to welcome guests is So that board. forward walk

We dialog Governor's office. continue the to in be with

be affected conditional court that's dialog We place, the from know in the continue that sale cruises, CDC, we cruises. And ruling XX. as sale were those there the the XXX% not to and will sail is a with through be conditional There in on prepared primarily order you vaccinated CDC order still with July order point, at that to people under this unvaccinated vaccinated.

X we're to very July everyone optimistic hard our in ensure Florida. make guests board we try are very Horizon And that But happy. working on to so and we welcoming can on

guys you Okay, about David, I the us any way housekeeping $X.X you this, about third expecting – ask is said announced talked what got based answer sure ALBDs there you're to guess, it. is you going quick what think And question? on I'm to today, but one I in can not like I well? fourth think help look have maybe million as you're And would quarter. you the quarter that

she it to you. calculation I can But don't Yes. I'm sure have that handy with Steve. me if you Beth, call provide

it. Okay. That's guys. Appreciate Thanks great.

you. Thank

question your ahead, of Securities. for go James a next, And Please question. Hardiman we sir. with the up from have you Wedbush Thank line

call. Hey. Good morning. Thanks for taking my

So sort of door... the opened David, you

Good morning, James.

don't it not mix do the a fluid you the plus or have Can have ships Good through, maybe voyages know, the that within is the you based social off you at that us occupancy that XX% have walk categories morning. obviously should to that but ramp situation, This of requirements and what capacity vaccinated, do. think we meet that currently vaccination what that expect how idea obviously be you you you both if distancing don't – hurdle? those requirements least your of about

out along, so how that that an everything in of hopeful of the will better should going expect we're and very we do we months into in weeks go the because what ahead. change, put evolve and expect that all it's cruises and give continue and in has exact clear and work. you evolving we as a very with to will ship mix there each we've been to it continues, to So things and us way positive a But days and situation the evolution COVID gets this forward, what difficult We're very announced recently we're and be mitigation. and

is have are will just there So that me my over question you the lot point higher hard because levels of vaccinated to know, it's If XX% the to detail talk in removed and be a to difficult then occupancy lot these projections it early that about potentially be XXXX. start protocols things answer of with And able is but case, to there very great time. for that see over expectation and progress that's some to we by project, getting how are we'll potentially out globe time. can of higher have

agility prepared in has have to to to Arnold react that have remarks, and point the his to the to been greatest we moving going remain agile one As things mentioned to us circumstances this try are gotten of forward.

just add think would I I that...

Go ahead. Understood.

what is and I to choppy. around choppy a saying a would in bit direction. the to is probably positive David like that be are little It it's moving to – going world probably to is business it and is a a just we're things little reinforce global going be going be

the and fleet. a as and people could XXXX by position beyond, path the it asked, be is various sail, be for full early XXXX vaccines, able of treatments, occupancy the of choppy. et So with the but to in transition getting will in or with the a quite place period. But cetera, full vaccines, with we've we're XXXX the be to a advancements a time advancements science be we'll in world some hopefully, said rest the to on great to But one

normality, But then similarly really so, did some quantify with helpful. of being if another of and to I one difficult – and I it's spring balance difficult And I XXXX about your difficult think think at like of to return any specificity. the issues companies in the most what just – that cruise of valuing the other is sheet company of point. terms looks sort figuring one out That's thing most

So get the of you other can interest sort us, number cash I near think term, in but we any to here is there cash of side to going restart once any about guess be breakeven we'll number. flow to a get figuring are or maybe out breakeven back give we are flow color that closer incremental an way is expense this. on some the to there cost any when I

Yes.

just remember, of talked we We're So in the have positive do full many back the of part, in operation. we'll back fleet in if to we have – variables to spring so the summer But we get about. and EBITDA, we forward move occupancy from that the then difficult should be levels particularly months normal get more XXXX significant able type there. XXXX,

fleet like we to be remember ships feel very in we five I we five project with and that it's our today coming ships to in XX but we're spring, are have operation newbuilds back So next where from operation in will more have XX service. today hard ships – in

away mind business that So seasonality to everybody we'll have our and the project results, isn't of that. the that EBITDA to And seen in ships exact spring has XX historical to always of goes difficult into know next if very our at But get is expenses you the positive you third at months with looking very a we do that spring. during far it's strongest in other our the goes look where forward point quarter process and positive. restart lot EBITDA. we quarter. are or some we're a we that expect And keep operation positive hopeful, But mentioned, flow cash the

represent month year, calendar or add represents of the If through of four third our you EBITDA May the actually just August but of our May, a in two-thirds it operating the profit. months

to on a full capture order of focused XXXX. getting fleet summer back in next service are we So great by in the spring

it. Got

I you think at say get tough that point. to not everything be breakeven year. next to that we that assuming should based you before this clarify, of makes level It's significantly just to on that spring sense. And then, said, just

to – It Well, guidance other say. to many not is giving with say it's I because because tough say I'm wouldn't restart else involved. of and everything expenses so factors tough

Okay, Thanks fair guys. enough.

Thank you.

next, for Jaime you with the your ahead. question. question a Please [Operator Thank go Up have from we line Katz of Instructions] Morningstar.

morning. good Hi,

Jaime. Hi,

to have in question that we into look been visibility of right I of markets actually – now want this some debt. to and refinance what James' you have you thank some able like capital

as to service you changes you the year the like make? about able should so would are that And about there to we think a costs think debt that make way we full if is

through the So I but for do you to question. halfway up about apologize me broke

repeat, So I do you why? apologize, if could I'm sure not

the the looks intended said, months some refinancing way been the capital now Is fairly debt you markets a for be has right over I plans year six since know to there the no of what guess. we thinking that XXXX? given like probably costs last problem. and refinance Sure, for ability should have current I we easy, that debt about service

interest think interest quarter, current XXXX. So our $X.X $X.X the about you're billion. billion if I said forecast expense, talking had Last is I for expense,

at give expect close in the but result mind what as repayments repayments, we those update look So the the prior I Debt Holiday to we deferral we to refinancing the principal in And were which that principal billion did is a in repayments a our principal think do if efforts. you two. decrease business the $X third expect debt quarter, with keep the of

will numbers well. those down come So as

way U.S. then, have the demand, time. would Thanks. is And European Pacific of this color at you COVID out the period. Right. love really on leading Asia that the know if to But hear any or I I

places in and vaccines. just everyone to safe ahead is vaccination. as And best So yourselves in the that the keep U.S. environment. again, of your encourage Europe well ones well done there safe. pockets of way with terms although in many we Obviously, are It's the get a have to loved general,

comment Asia movement standpoint I'll and Australia so here more talk although and environment Australia David and abroad. collectively, regard, lockdown about U.S. booking comes there that are and to an China on let Asia in particular there pretty – are situation general But still the and and the when good elsewhere. up Europe in travel. are I'll in And in much is on pockets from then it Australia

to to it on comments players want open And in booking And we Dave, some constant the be there. dialog you to eventually, we'll it be give up with go when does. appropriate will ready so and continue environment.

Yes.

So I strong XXXX as brands. guess of case ahead book NAA the very as best both way XXXX to actually phrase it, brands a and we our EA the the well said for that's was position our that

– as as things pond sides of seeing Arnold are to we bookings good continue indicated, both the strong we rebound. are on So

Thank you.

Thank you.

of Thank question. have go ahead. we Securities. Up question the line Patrick you Scholes next, your for Please with a Truist from

right. All everyone. Good morning,

morning, Patrick. Good

Good morning.

XQ can what For and/or the occupancy in on and are limitations Thank for you XQ, targeting on you occupancy ships? sailings those give us you. an update

Sure.

sailings broadly for the is order are one people, now, any today; for under, David for vaccinated things conditional way those aren't there So physical cetera. primarily are sail mentioned there earlier, distancing the no right as that restrictions, et

enhanced board our And our of to, so first we things. that to are slowly and occupancy oriented because chance other get of up are a standpoint on all, having we crew management crew ramping type give a protocols on sailings from still

– again as requirements be and some point close can on as do point. unvaccinated And board, in physical lot get then of cruises by have change all had outside so have – can by lessens their separate under extent of other and that there we and long those protocols we are pretty cruises limited at that and of the community heard evolve time to distancing immunity as spread persist the a set have they people full occupancies that a and that To some increases. because the occupancy we U.S. to places their

exactly point, And time. home we of hard have requirements, at because kind be on a already reference, the destination and to the port we're so at it's itineraries, it's hodgepodge, look where predict what requirements, the the going to the specific to and environment this is those as David at

and Now, we're will trend all hopefully optimistic that now pretty right continue.

point. think not David? full more we're forecasting we and higher be to directionally, occupancy. we'll and But moving occupancy So higher then at this

Okay.

that Arnold. think I well said, was And

Okay.

Thank you.

Okay.

that of that? guess last the think starting to for what quarter point capacity out did the limited occupancy a I go was Just on as

we and I'll March understand have So occupancy at were you the that end they on or as seeing give example. ALBD. background there went of you to very XX% in in started other above limited, were a improved great quarter was do the four The ship one were quarter like was because May. the it started There that by $XXX,XXX ships then ships and started, the that but

and AIDA sailing this One the was quarantine restricted Canary in travel people the had Germany, the because to the the of so better that and requirements reduce, flows Germans the ship in home. of to went ships on cash Islands, for on then, the started But to restrictions better once when they better you quarantine started came travel and better see and ship. the and occupancies,

ships quarter. So cash we early in while invest we did the see flows did the on on, positive later

overall So we experience. were with the pleased very

occupancies And protocols, medical handling. we on testing, universal that Yes. case, – mask had enhanced had screening, managed at on we enhance we early distancing, proactively the air extensive enhanced wearing, because physical sanitation, again,

on So occupancy and lot the really a initially different the whole there we pretty of protocols was stringent were and really on so those tapped ourselves.

reasons for expecting we talked goes we're that about. as better occupancies time see on all And to the

Thank great. you. sense coming luck and that's Makes for up. you, certainly in Florida certainly – Thank Sure, David. good

you. Thank

you Thank Citi. ahead. James of Please question. for line Ainley have your And the up with we from go question a next

taking my everybody. morning Yes, Thanks questions. for good

morning. Good

and more, Can more digging about commitments bit in morning. reduction into carbon XX% flush ESG a and XXXX. get I'm you that. might you and just credits to just your a the things mechanisms Good help can emissions the buy cost need interested tools by out you you thinking what I'm bit in the of kind like potential be maybe need implications with and us to there might carbon

color any So be that helpful. would very on

number of different waste and we like in march Sure. engines reduction basic more – liquefied of We've our XX% planning hard made been just ways lighting already things emissions schemes early we and really ways on tuning commitment some for there itineraries and for required rigorous effected our baseline a gas. And a density in since an course, infrastructure handling more on on reduction carefully then, XXXX that ships. a and carbon the in through of a in place before of a on we've investment so being or to achieved and even concerted was time on technologies and natural of and much

got fuel did the We that that, were AIDA But with going brand. first ship construction to our or and LNG construction. an in sure the infrastructure work during ship. with either total deal then place under the frankly, whatnot how we with – Shell we we've do out even now XX we we that the in sailing commitment now time to and such and were weren't phase we So a have had made to we ships

have have and ways I XX% As to combinations lithium-ion over we a there. footprint the But is and emission so from zero us But and we're is smaller fossil some to the ultimately, in those work are the emission et net you technology, there also a your us are have our cetera. to line size a with to gives the form reduction. cleanest to that technology we of platform better have do question. XX% need march time net of and we technology the fuel. for sight goal biofuels to going zero. gotten and burning plan going know carbon hope cell a on I battery to get get technology, fuel LNG of hard advancements It We're a answered and standpoint

Yes, thanks.

ships how reduction of own, from own? come much LNG on will them on their the their that So XX%

as we're say, Well XX%. already at I'd

from day XX% as the get more engineered way one is represent, move one fleet. of XXth about the ships LNG ships So efficient but will with continue forward, – once that we our to to we'll everything new inherently be are we because

a contributor beat hopefully XX% able to be will being they So target. significant to the us achieve and

great. Thank Okay, you.

Thank you.

go again. we of Please you once question And Badishkanian ahead. from from Thank Wolfe line have Research. the a now Greg

Hey Fred actually guys, Greg. for on it's Wightman

full international access that we deployment yield to looking by third possibility you some just mode the normalized on full is possibility we the Should touched we at be the back that more fleet in we the in about reduced think do considerations and If the think guys. David, of expect about just of mix or next think could the hey, quarter sourcing specifically. travel As the some seasonality summer. from then? – headwinds a

exited ships we're guidance give what this we've anything or is, I at But Again, any say or to would not XX point. trying will.

And remarks earlier, reduction significant so in a that's the in capacity. as I said

brands. excited very growth comparable get we as therefore, an capacity eventually. the were as And industry ships, at by keep reality and next and a is cruisers not company rate had in the to to we a what Now still before. that much repeat lower base new than again, With of in we're we'll huge have are which to adding have a across spring various lot XXXX of cruise mind our opportunity demand, But pent-up of cruisers may lot repeat we we a about. a we're

there wanted largely predict. operating add know, point try a so in. David, to still time you pent-up we're will And be in anticipating considerable at that I that unsatisfied any that's we'll environment been has going color. as if to we be and don't demand far the to that But so aren't

every add that is restrictions travel only I'll Yes. thing No, other being on restrictions, day. changed are and reduced the travel

I away, So months we're XX, months talking the XXXX, away. XX of summer XX mean

December my restrictions. to to travel XXXX. if So most of lot opportunity things those many we before see to disappear – forward the expect continue I Greece booked Turkey, I to there as restrictions and I'm is evolve as XXXX. improve of a know and and and to of cruise looking I reduced in go or not summer it forward looking all of Italy, to really

premium And when David definitely he… gives the friends and family

Exactly.

no There big is Yes. right, for David. price,

you, Glad David. that hear for Good. to

line Ali Thank the Naqvi we question go a of from you. HSBC. And with next have ahead. Please up

Hi, question. the thank you for taking

on your get look equity increase grade? to longer investment leverage wanted you ask, of to pace deploy terms maybe would term, to to to Just the views in

on do we're we the But feel, back interest get refinancings maximization fleet. the good quickly, the We're some debt. is cash us is right of accelerate going way look, liquidity the and of the basically, have full we're Real that's to lower place along burden path the way. we now. sailing to Cash to repayment going way generation to in now, to

the to of Does have happen and XXXX sort a Understood that? do cruising beyond to as normalizes? in view happens when pricing for what or you pent-up demand

as said X.X% the plans, X.X%. I have trend were for think newbuilds, we XXXX growth we've of in, our the taken through already a of be call, rate the in pre-COVID on coming a with we annualized at moves growth we'll I on

and want think people So I that's that, again, spent lower time in isolation have things. people lot much growth pent-up to demand, lockdown, continued of experience a a rate, and really

future years predict a it's going hard here. – environment last but some obviously me I think logically that's be the a for and that we're there for while, good optimistic so will we're to the

Understood. Very clear.

take we'll operator, So the one given more question. time,

Zackfia final sir. from the go William Blair. therefore Please you, with of comes question line Thank And Sharon ahead. the

alphabetical Hi, I'm convinced you guys go in order.

the come So But these is and David, I in year, something, are next just half clarify or guess the wanted expectation you we raising just do it second of the to I for first. the the weighted time timing. CapEx first year to on

the year weighted second Oh, half to the timing. it's of

a dry We have – docks. because as part – of during pause, the we delayed of lot

We is a with into timing in the weighted have associated the going see half. of quite and towards you the so will second dock capital second ships half those XXXX, so and dry few ships

the be spending? question. what or appetite to seeing Perfect. the This hard is may just But one aspect And being given bundling in of you ascertain offered. are on-board other pre-booking what's what then for

packages. the they booking people and it's but with it similar brands things try side on-board you we have talking seen that what seeing on-board as you not other talk who significant on-board always pushing difficult bundled So to as the the they on cruise associated to the to about historically in is, still very around them, dissect spend and the the – I'm trends changes globe, and are you say, are various when very, because When we're packages trends, no have front.

Okay. Thank you.

appreciate you, about an to in you welcome your Thank expanded excited board to very feeling have Okay. and very Really here we're on Thank it. great a the you, months much. thank coming opportunity time. everyone. It's guests operator. But

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