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...and who's down

Snacks / Monday, September 21, 2020

Reel in the nautical puns... Shares of cruise operator Carnival sank 15% last week on a boatload of bad news (sorry). Carnival lost $2.9B last quarter and it literally only has 1 ship sailing right now. Oh, and it also just announced a $1B sale of new stock to raise money at the worst possible time — Carnival stock is down ~70% this year, so it's selling shares at a major low point. But it's losing $770M/month and only has $8B in cash left, so it's desperate.

Try offering "flights to nowhere"... Delta 's cash runway doesn't look too good: it's losing ~$800M/month while domestic travel is down ~60% from last year. The government's $25B in airline bailout funds runs out on October 1st. Now Delta is mortgaging its frequent flyer program to raise cash. Last Monday, Delta announced it would use its SkyMiles program as collateral to raise $6.5B in debt. On Thursday, it upped that to $9B.

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