ROYAL CARIBBEAN CRUISE LINE CEO RICHARD FAIN SPEAKS

Thank you, Seema. Good to be back.

Well, I think we have said that we're not sure when we're coming back. We won't come back until we're absolutely sure that we've done everything we can to work to protect the safety of our guests and crew. We said we won't be back before the end of July, but we haven't gone to the next step of saying we're absolutely confident that we're starting on August 1st. We will work with the authorities, we will work with all the experts that we have asked to help us on this to make sure that we are doing everything we can to protect our guests and crew.

Well, you know, we have wonderful crew members who really devote their lives to helping our guests, and they come from a hundred countries around the world. And in this situation, every country seems to have its own travel restrictions, its own border restrictions, even for its own citizens. And so it's very difficult to coordinate having all these people go through it. But we've already managed to get a large percentage home. We've taken the extra step of coordinating to bring a lot of crew members from all over the fleet to assemble them on individual ships, and then we're using those ships to transport them home. It's frankly a difficult thing to do. It's very complicated. It's also very expensive. But these people really want to get home to their families.

No, absolutely not. In fact, we know we won't be able to make that schedule because there are some countries that are limiting and not allowing their crew members, their citizens back under any circumstances. Well, we do think that we're making quite strong steps. We've got 10,000 that we're coordinating to go home on our ships, and we think that the rest will be coming home over the next couple of weeks.

Well, I think we're all learning. I think that's one of the important things, and it's important that we do understand all the implications. We have consulted with some of the leading experts in the world, and we'll be talking more about that before we come back to make sure that we have the best protocols with that sanitation, the best hygiene, the best testing, etc., to allow us to come back in a way that we are confident is doing all the things that we should be to protect those people. You know, I used a metaphor before of comparing ourselves to taking an airline flight after 9/11. After 9/11, a lot of people said nobody's gonna fly again, and if they do, it's going to be such an unpleasant circumstance nobody will do it. And the truth is, flying today is not like it was pre-9/11, but it is very much part of what we do. And the cruise lines over time have shown their ability to adjust to a new world. Cruising last year wasn't anything like cruising was five years ago, and I think cruising next year will be different than it was this year.

Well, my guess is, and of course we don't know this because we have to work with the authorities and our experts and learn as society opens up, society is also finding things out. And my guess is that when we start, we will limit the number of people who can go on to a ship, just as my neighborhood restaurants are beginning to open up. But 60%, 50%? Yes, I wish I knew. That's the kind of question that we're asking ourselves right now. And by the way, we'll learn from the experience in our society. We'll learn from the restaurants, we'll learn from the barbershops—I know I need one—and we will adjust much as they're doing. So we'll start at one point and then gradually, as knowledge of the disease, as the testing, as the contact tracing, as vaccines come on board, that will gradually adjust. The other thing I have to say, and Seema, as you say, you've been on our Oasis class ships, they're very large ships, but actually that makes social distancing easier because we can spread people out. There's actually more room per person, so that actually makes it easier. So it's not the size of the ship, it's the way you manage your product.

No. What I do have a moment is, and I say, 'Why our society?' This is a terrible thing. Yes, we had an amazing business model, and we will again. But look around, everybody is suffering. And by the way, you mentioned the crew members. These people are far from home, far from their loved ones. I'm isolating at home. I think a lot of my friends and business colleagues are, but with our families, we are relatively free. A lot of people, our crew can't be with their family. People who have lost their jobs. So, you know, look, I was very proud of the business that we built, but I was proud of the people that did it, and those people are still there, and they're going to make it fantastic not too long. So don't feel sorry for me.

Sure. So the answer to the first question is, as it relates to what percent we need, it depends on the ship, frankly. The newer, larger ships are very much more efficient with a lower fixed cost, so we have a much lower break-even point, and that helps us. With respect to forward bookings, the vast bulk of them are new bookings, not FCCs. It's a relatively small amount of those that are future cruise certificates.

A very important point, and one that we are focused on with our own experts and with our outside experts. And it's something that really requires thought ahead of time. So we have, unfortunately, we're also much more knowledgeable about COVID-19 and the consequences than we were a few weeks ago, never mind a couple of months ago. And we didn't have in place protocols and programs for if this happens, this is what we do. And we need that in today's circumstance. So I have mentioned, and we've been public about this, there are the four aspects of how do we have our safe and healthy return to service. And the first is screening before they get on, the second is dealing with them when they're on the ship, the third is the destinations, but the fourth is the one you talk about: how do we make sure that we have an established protocol made in conjunction with the ports so that we're all set, and when and if such a thing happens, we are ready to go. That is a big focus of the work that we've been doing and that we will be doing. And we have to have an established process in place. And I'm really pleased with the work that our teams have done to focus on that, to be realistic about it. And so if and when that happens in the future, we will have a program that takes that into account, because you're right, that is an issue that people are concerned about.

Appreciate it, Seema. Thank you for having me, and stay safe.