Royal Caribbean Group and Norwegian Cruise Line Holdings both expect to be cash flow positive within six months. They also stated that the reason is because of high onboard spending.Jason Liberty, Royal Caribbean Group's CFO, stated that there was "record onboard income for the ships which have resumed service."This is encouraging because we are seeing pent up demand for cruises and pent up demand for onboard revenue experiences. Liberty stated that guests are enjoying the shore excursions, casinos and spas after spending a year alone. We are seeing an increase in demand for our WiFi services because more people can work remotely and take vacations.Frank Del Rio, CEO of NCLH, stated that "onboard revenue was through-the- roof" for the Norwegian Jade's sailings to Europe.He stated that "our onboard revenue significantly exceeded our goal, which was based on actual 2019 results by more than 50%."Mark Kempa, NCLH's Chief Financial Officer, stated that the Norwegian Jade Cruises were profitable, even with 60% occupancy."Vessels that are operational are cash-flow positive from the gate. That's extremely important. We've seen this with the first two voyages of Norwegian Jade. He said that we expect the same to happen for the remaining voyages of the fleet."Kempa predicts that NCLH will have 75% to 88% of its ships back in service before the year ends. Kempa also expects the company to be profitable by 2022."With everything, there's always risk, but we believe we have a solid plan to return to cash-flow positive operations. Kempa said.Liberty stated that the company's onboard capacity increases steadily after each ship sails several cruises. Several ships now have more than 50% load factors.He stated, "We envision ourselves becoming cash-flow positive within six months."
