[19] [20]. Travel and European bank stocks continue to slip.
During the second quarter, the Group generated operating cash flow of approximately $0.5 billion. Booking volumes received in the second quarter for 2022 sailings averaged 30% above 2019 booking volumes for 2019 sailings in the corresponding period in the second quarter with even greater strength in July. Island Cruises became an informal cruise line on the British and Brazilian markets. We expect stabilizing pricing in 2020 despite ongoing economic struggles abroad. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Total revenues per passenger cruise day were at record levels and up 4% as reported and 5% in constant currency versus the second quarter of 2019. "Our liquidity position remains strong as we execute on our return to service, and our operations generate positive cash flow again," said Naftali Holtz, chief financial officer, Royal Caribbean Group. Silver Endeavour is scheduled to begin service winter 2022, spending its inaugural season in Antarctica starting November 2022. Second half 2022 sailings are booked at higher prices than 2019, both including and excluding FCCs. Founded in 1994 by the Vlasov Group of Monaco and the Lefebvre family of Rome it pioneered all-inclusive cruising with its first ship, Silver Cloud. For the 2022 periods presented, we calculate "Constant-Currency" by applying the average 2019 or Q1 2022 period exchange rates for each of the corresponding months of the reported and/or forecasted period, so as to calculate what the results would have been had exchange rates been the same throughout both periods. In July, the Group acquired an ultra-luxury expedition cruise ship that was originally delivered in 2021. 
The company also reported Adjusted Net Loss of $(0.5) billion or $(2.08) per share for the second quarter of 2022 compared to Adjusted Net Loss of $(1.3) billion or $(5.06) per share in the prior year. This call can be heard, either live or on a delayed basis, on the company's Investor Relations website at www.rclinvestor.com. We believe that this non-GAAP measure is meaningful when assessing our operating performance on a comparative basis. Based on this change, we are continuing to adapt our protocols to align more closely with how the rest of society and other travel and leisure businesses are operating. FOMC meeting ahead; Chinese tech stocks jump, cruise line stocks sink. We've cut our economic moat ratings on these notable names. 
Net Cruise Costs (NCC), excluding fuel, per APCD improved 16.5% as reported and 16.2% in constant currency, compared to the first quarter of 2022. Pre-cruise onboard purchases continue to exceed prior years at higher prices, indicating quality and healthy future demand. [7], A third brand under Royal Caribbean Cruises ownership was formed in 2000 when Island Cruises was created as a joint venture with First Choice Holidays. Booking volumes for 2023 have shown consistent improvement week over week and have been accelerating over the last several weeks. 
These measures may be different from adjusted measures used by other companies. 
The Group continues to benefit from the delivery of new, more efficient ships and past sales of less efficient ships, as well as actions taken to improve operating costs and margins that continue to materialize as operations ramp up. Read our editorial policy to learn more about our process. A reconciliation to the most comparable U.S. GAAP measure of all adjusted financial measures included in this press release can be found in the tables included at the end of this press release. For the 2022 and 2021 periods presented, these items included (i) impairment and credit losses (recoveries); (ii) restructuring charges and other initiative expenses; (iii) the amortization of the Silversea Cruises intangible assets resulting from the Silversea Cruises acquisition in 2018; (iv) the amortization of non-cash debt discount on our convertible notes; (v) the estimated cash refunds expected to be paid to Pullmantur guests as part of the Pullmantur S.A. reorganization in 2020; (vi) gain on the extinguishment of debt; (vii) equity investment asset impairments; (viii) net insurance recoveries related to the collapse of the drydock structure at the Grand Bahama Shipyard involving Oasis of the Seas; and (ix) the net gain recognized in 2021 in relation to the sale of the Azamara brand. In addition, cancellation activity has now returned to pre-COVID levels. (5) Represents equity investment asset impairments for TUI Cruises GmbH in 2021 as a result of the impact of COVID-19. We plan to wait for more clarity on the persistence of the coronavirus before further altering our forward estimates. Changes in operating assets and liabilities: Increase in trade and other receivables, net, Increase in prepaid expenses and other assets, Decrease in accrued expenses and other liabilities, Cash received on settlement of derivative financial instruments, Cash paid on settlement of derivative financial instruments, Investments in and loans to unconsolidated affiliates, Cash received on loans to unconsolidated affiliates, Proceeds from the sale of property and equipment and other assets, Net cash provided by financing activities, Effect of exchange rate changes on cash and cash equivalents, Net (decrease) increase in cash and cash equivalents, Cash and cash equivalents at beginning of period, Cash and cash equivalents at end of period, Notes receivable issued upon sale of property and equipment and other assets, Purchase of property and equipment included in accounts payable and accrued expenses and other liabilities. As of June 30, 2022, the Group's liquidity position was $3.3 billion, which includes cash and cash equivalents, undrawn revolving credit facility capacity, and a $700 million commitment for a 364-day term loan facility. MIAMI, July 28, 2022 /PRNewswire/ -- Royal Caribbean Group (NYSE: RCL) today reported second quarter 2022 net loss of $(0.5) billion and loss per share of $(2.05). Royal Caribbean Group (NYSE: RCL) is one of the leading cruise companies in the world with a global fleet of 64 ships traveling to approximately 1,000 destinations around the world. Occupancy ("Load Factor")Occupancy, in accordance with cruise vacation industry practice, is calculated by dividing Passenger Cruise Days by APCD. It was also announced by the CEO of Royal Caribbean that Freeport Harbor will be developed into a cruise facility of choice. Forward-looking statements reflect managements current expectations, are based on judgments, are inherently uncertain and are subject to risks, uncertainties and other factors, which could cause our actual results, performance or achievements to differ materially from the future results, performance or achievements expressed or implied in those forward-looking statements. Oil tops $116, Occidental and Kroger hit new highs. Second quarter results exceeded the company's expectations driven by better revenue and cost performance. Based on the continued strength in consumer demand, the company expects load factors will average approximately 95% in the third quarter and increase to triple digits by year-end. (11)Represents net insurance recoveries related to the collapse of the drydock structure at the Grand Bahama Shipyard involving Oasis of the Seas. "Our liquidity position remains strong, and we are generating positive operating cash flow and EBITDA. Develop and improve features of our offerings. Verify your identity, personalize the content you receive, or create and administer your account. Due to this uncertainty, we do not believe that reconciling information for such projected figures would be meaningful. Safeguarding and Protecting the Worlds Oceans and Destinations we Operate, and the Health and Well-Being of our Guests and Crew Members. Celebrity Cruises is a cruise line headquartered in Miami, Florida[22] and a wholly owned subsidiary of Royal Caribbean Group. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to us on the date hereof. As of January 2022, the line operates twenty-six ships and has four additional ships on order.
Adjusted EBITDAAdjusted EBITDA represents EBITDA (as defined below) excluding (i) other income; (ii) impairment and credit losses (recoveries); (iii) restructuring charges and other initiative expenses; (iv) equity investment asset impairments; (v) net insurance recoveries related to the collapse of the drydock structure at the Grand Bahama Shipyard involving Oasis of the Seas; and (vi) the net gain recognized in 2021 in relation to the sale of the Azamara brand. In 2018, Royal Caribbean International controlled 19.2% of the worldwide cruise market by passengers and 14.0% by revenue. A keel-laying ceremony took place at Finnish shipyard Meyer Turku to celebrate the progress on the revolutionary cruise ship. (1)For the quarter and six months ended June 30, 2019, the amount does not include incremental fuel expenses incurred of $0.7 million related to the collapse of the drydock structure at the Grand Bahama Shipyard involving Oasis of the Seas. Investors go on the defensive, leading to big gains for packaged-food stocks. How we use your information depends on the product and service that you use and your relationship with us. We believe that this non-GAAP measure is meaningful when assessing our performance on a comparative basis. (7) Included within Other income in our consolidated statements of comprehensive loss. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Weve made tremendous progress in our conservation efforts in partnership with World Wildlife Fund. For this reason, we also monitor our revenues and expenses in "Constant-Currency" - i.e., as if the current period's currency exchange rates had remained constant with the comparable prior period's rates. The company started operations in 2009 and competes with AIDA Cruises for the German market. Celebrity Cruises was founded in 1988 by the Greece-based Chandris Group, and merged with Royal Caribbean Cruise Line in 1997. In measuring our ability to control costs in a manner that positively impacts net income, we believe changes in Net Cruise Costs and Net Cruise Costs excluding Fuel to be the most relevant indicators of our performance. 'COLOUR THE WORLD': SILVERSEA SEWS CULTURE, COLOR, AND TASTE INTO ITS LARGEST-EVER VOYAGE COLLECTION FOR 2024/2025 WITH HAUTE COUTURE CATWALK, ROYAL CARIBBEAN GROUP REPORTS SECOND QUARTER 2022 RESULTS, HIGHLIGHTED BY THE RETURN OF ITS FULL FLEET BACK TO SERVICE AND POSITIVE OPERATING CASH FLOW, Cautionary Statement Concerning Forward-Looking Statements. The ship has been renamed Silver Endeavour and joined the Silversea fleet on July 21. TUI Cruises's subsidiary, TUI Travel, had a 50% interest in Island Cruises following their merger with First Choice Holidays in 2007. Provide specific products and services to you, such as portfolio management or data aggregation. (9)Primarily represents asset impairments in 2021 and a credit loss recovery for a note receivable in which credit losses were previously recorded in 2022. [14][15] It also adjusted its logo. "We have taken and will continue to take proactive actions to improve our cash flow, balance sheet and methodically address near-term maturities.". As expected, load factors for sailings in the second half of 2022 remain below historical levels and are expected to finish at approximately 95% in the third quarter and reach triple digits by the end of the year. Approximately 60% of the FCC balance accumulated since the start of the pandemic has been redeemed.
Since the purchase, Royal Caribbean has announced that it is intended for the resort to be developed into a cruise destination that will benefit the local Freeport economy. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to us on the date hereof. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive. Based on current currency exchange rates and fuel rates, the company expects Adjusted EBITDA of $700 million - $750 million in the third quarter. Adjusted Net Loss and Adjusted Loss per Share were calculated as follows (in thousands, except per share data): Impairment and credit losses (recoveries) (2), Restructuring charges and other initiatives expense, Amortization of Silversea Cruises intangible assets related to Silversea Cruises acquisition, Convertible debt amortization of debt discount (3), Net gain related to the sale of the Azamara brand, Weighted-Average Shares Outstanding - Diluted. The company does not forecast fuel rates, and fuel cost calculations are based on current at-the-pump prices, net of hedging impacts. We believe that this non-GAAP measure is meaningful when assessing our operating performance on a comparative basis. Adjusted measures have limitations in that they do not reflect all of the amounts associated with our results of operations as do the corresponding U.S. GAAP measures. A few undervalued stocks remain, but many have already surged past fair value. Certain statements in this release relating to, among other things, our future performance estimates, forecasts and projections constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. The company has scheduled a conference call at 10:00 a.m. Eastern Time today. The company also has a 50% investment in a joint venture that operates TUI Cruises and Hapag-Lloyd Cruises, allowing it to compete on the basis of innovation, quality of ships and service, variety of itineraries, choice of destinations, and price. [9] It followed this with the formation of CDF Croisires de France in May 2008 to serve the French-language market. Load factors increased to almost 90% in June, with Caribbean itineraries averaging over 100%. Examples of these risks, uncertainties and other factors include, but are not limited to the following: the impact of the global incidence and spread of COVID-19, which has led to the temporary suspension of our operations and has had and will continue to have a material adverse impact on our business and results of operations, or other contagious illnesses on economic conditions and the travel industry in general and the financial position and operating results of our Company in particular, such as: the current and potential additional governmental and self-imposed travel restrictions, the current and potential extension of the suspension of cruises and new additional suspensions, guest cancellations; our ability to obtain sufficient financing, capital or revenues to satisfy liquidity needs, capital expenditures, debt repayments and other financing needs; the effectiveness of the actions we have taken to improve and address our liquidity needs; the impact of the economic and geopolitical environment on key aspects of our business, such as the demand for cruises, passenger spending, and operating costs; incidents or adverse publicity concerning our ships, port facilities, land destinations and/or passengers or the cruise vacation industry in general; concerns over safety, health and security of guests and crew; further impairments of our goodwill, long-lived assets, equity investments and notes receivable; an inability to source our crew or our provisions and supplies from certain places; the incurrence of COVID-19 and other contagious diseases on our ships and an increase in concern about the risk of illness on our ships or when traveling to or from our ships, all of which reduces demand; unavailability of ports of call; growing anti-tourism sentiments and environmental concerns; changes in US foreign travel policy; the uncertainties of conducting business internationally and expanding into new markets and new ventures; our ability to recruit, develop and retain high quality personnel; changes in operating and financing costs; our indebtedness, any additional indebtedness we may incur and restrictions in the agreements governing our indebtedness that limit our flexibility in operating our business, including the significant portion of assets that are collateral under these agreements; the impact of foreign currency exchange rates, interest rate and fuel price fluctuations; the settlement of conversions of our convertible notes, if any, in shares of our common stock or a combination of cash and shares of our common stock, which may result in substantial dilution for our existing shareholders; our expectation that we will not declare or pay dividends on our common stock for the near future; vacation industry competition and changes in industry capacity and overcapacity; the risks and costs associated with protecting our systems and maintaining integrity and security of our business information, as well as personal data of our guests, employees and others; the impact of new or changing legislation and regulations or governmental orders on our business; pending or threatened litigation, investigations and enforcement actions; the effects of weather, natural disasters and seasonality on our business; emergency ship repairs, including the related lost revenue; the impact of issues at shipyards, including ship delivery delays, ship cancellations or ship construction cost increases; shipyard unavailability; and the unavailability or cost of air service. Silversea Cruises' new ultra-luxury cruise ship joins the fleet later this month and is scheduled to begin service winter 2022/2023, spending her inaugural season in Antarctica beginning November 2022. The second half of 2022 is booked below historical ranges but at higher prices than 2019, with and without future cruise credits (FCCs). Passenger Cruise DaysPassenger Cruise Days represent the number of passengers carried for the period multiplied by the number of days of their respective cruises. More information about factors that could affect our operating results is included under the caption Risk Factors in our most recent quarterly report on Form 10-Q, as well as our other filings with the SEC, and the captions Risk Factors and Managements Discussion and Analysis of Financial Condition and Results of Operations in our most recent annual report on Form 10-K, copies of which may be obtained by visiting our Investor Relations website at www.rclinvestor.com or the SECs website at www.sec.gov. The transaction is expected to be immediately accretive to earnings, cash flow and return on invested capital. [36], This article is about the holding company that owns several cruise lines. Trip.com and airlines on the rise, while bank stocks take a hit. Booking volumes received in the second quarter for the back half of 2022 sailings remained significantly higher than booking volumes received in the second quarter of 2019 for the back half of 2019. Gross Cruise CostsGross Cruise Costs represent the sum of total cruise operating expenses plus marketing, selling and administrative expenses. In the second quarter, approximately 90% of total bookings were new versus FCC redemptions. We continue to see a robust and accelerating demand environment for cruising and on-board spend. Royal Caribbean Group is the owner and operator of three award winning cruise brands: Royal Caribbean International, Celebrity Cruises, and Silversea Cruises and it is also a 50% owner of a joint venture that operates TUI Cruises and Hapag-Lloyd Cruises. [29] Pullmantur under Administration review was hoping to restart some operations with MV Horizon, laid up in Eleusis Bay, and two Celebrity Millennium class cruise ships. [32], TUI Cruises is a cruise line based in Germany. The company reported Net Loss for the second quarter of 2022 of $(0.5) billion or $(2.05) per share compared to Net Loss of $(1.3) billion or $(5.29) per share in the prior year. Over the longer term, changes in guest sourcing and shifting the amount of purchases between currencies can significantly change the impact of the purely currency-based fluctuations.
In June, the Group completed the return of its global fleet to operations across key destinations. Net Cruise Costs ("NCC") and NCC excluding FuelNet Cruise Costs represent Gross Cruise Costs excluding commissions, transportation and other expenses and onboard and other expenses and, in the case of Net Cruise Costs excluding Fuel, fuel expenses. For the 2022 and 2019 periods presented, Net Cruise Costs and Net Cruise Costs excluding Fuel exclude (i) restructuring charges and other initiative expenses; (ii) the transaction costs related to the Silversea Cruises acquisition; and (iii) the costs, net of insurance recoveries, related to the Grand Bahama drydock structure incident involving Oasis of the Seas. [13] The only known destination that the company is to develop is the Grand Lucayan Resort, located in Freeport after the hotel campus was sold to newly formed subsidiary by the Bahamian Government. Of the redeemed FCCs, about half have already sailed resulting in revenue being recognized. Royal Caribbean Group is the owner and operator of three award winning cruise brands: Royal Caribbean International, Celebrity Cruises, and Silversea Cruises and it is also a 50% owner of a joint venture that operates TUI Cruises and Hapag-Lloyd Cruises. [28], Pullmantur Cruises was the largest Spain-based cruise line. [30], By December 2020, a reorganization plan had been developed, to restart some cruises, with financial assistance from Royal Caribbean. The Net Loss and Adjusted Net Loss for the quarter are primarily the result of the impact of the COVID-19 pandemic on the business. Royal Caribbean Group and the Pan American Development Foundation partnered to host a STEM program for Bahamian teachers from across the island and a STEM camp for students with a focus on oceanography in Nassau. Royal Caribbean International (RCI), also formerly known as Royal Caribbean Cruise Line (RCCL), is a cruise line brand founded in 1968 in Norway and organised as a wholly owned subsidiary of Royal Caribbean Group since 1997. More importantly, we think structural changes Royal made to costs during the pandemic will ultimately allow it to reach a 37% EBITDA margin, well above its prepandemic 31%. The third-quarter EPS goal of $0.05-$0.25 marks the first quarter of profitability since prior to the pandemic but was lower than the above $1 we forecast as inflation continues to eats into profit potential. This means that we're transitioning to the point where everyone will be able to vacation with us while always working with our destination partners to meet their regulations. Words such as "anticipate," "believe," "could," "driving," "estimate," "expect," "goal," "intend," "may," "plan," "project," "seek," "should," "will," "would," "considering," and similar expressions are intended to help identify forward-looking statements. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. Together, the brands have an additional 10 ships on order as of June 30, 2022. NCC, excluding fuel, per APCD is expected to significantly improve in the second half of the year compared to the first half of 2022 and be higher for the second half of 2022 by mid-single digits compared to the second half of 2019 all on a constant currency basis. [4][5] Previously Royal Caribbean Group also fully owned Azamara Cruises selling the cruise line to Sycamore Partners in January 2021, and 50% of Island Cruises, selling their stake to TUI Travel PLC in October 2008. Pullmantur Cruises was a cruise line headquartered in Madrid, Spain. Royal Caribbean is the world's second-largest cruise company, operating 63 ships across five global and partner brands in the cruise vacation industry, with 11 more ships on order. Cision Distribution 888-776-0942 More information about factors that could affect our operating results is included under the caption "Risk Factors" in our most recent current report on Form 10-Q, as well as our other filings with the SEC, copies of which may be obtained by visiting our Investor Relations website at www.rclinvestor.com or the SEC's website at www.sec.gov. (3) Represents the amortization of non-cash debt discount on our convertible notes. It targets German-speaking customers who opt for a premium cruise experience. This near-term update doesnt impact our $80 fair value estimate or our long-term outlook, and we still think Royal can surpass 2019s level of revenue and passengers in 2023. The Group is now offering cruises in all of its key destinations with the exception of China. The company completed the divestiture of its Azamara brand in the first quarter of 2021. (6)Represents net insurance recoveries related to the collapse of the drydock structure at the Grand Bahama Shipyard involving Oasis of the Seas. (8)Excludes income tax (benefit) expense, included in the EBITDA calculation above. EBITDAEBITDA represents Net (Loss) Income excluding (i) interest income; (ii) interest expense, net of interest capitalized; (iii) depreciation and amortization expenses; and (iv) income tax benefit or expense. "Consumers' propensity to travel and cruise remains strong. It was formed in 2007 as a joint venture between the German tourism company TUI AG and the American cruise line operator Royal Caribbean Cruises Ltd., both of whom hold a 50% stake in the company. Instead, they were either laid up or under charter to other cruise lines, such as the Brazil-based Viagens CVC.