The company gave a business update on 2021 bookings. The company stated in the 8K filing the following:
Despite substantially reduced marketing and selling spend, the company continues to see demand from new bookings for 2021. For the most recent booking period, the first three weeks in June 2020, almost 60 percent of 2021 bookings were new bookings. The remaining 2021 booking volumes resulted from guests applying their FCCs to specific future cruises.
One concerning aspect of the update is the cash burn. The average cash burn rate for the second half of 2020 is estimated at about $650 million per month. This rate includes approximately $250 million of ongoing ship operating and administrative expenses. Additionally, since March, the company has raised over $10 billion through a series of financing transactions, including transactions that have occurred in the last three weeks.
Even though 2021 bookings looks promising, the monthly cash burn and new loans are red flags. For this reason we don't recommend going on-board just yet.
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