Today on an earnings call Disney shared that they expect the Disneyland Resort will stay closed through the end of the year or first fiscal quarter. The news came from Disney CFO Christine McCarthy on the call. Disney CEO also voiced his disappointment in the inability of the Disneyland Resort to reopen due to California’s current restrictions.
“We are extremely disappointed that the state of California continues to keep Disneyland closed despite our proven track record,” Chapek again asserted on the call.
“We believe state leadership should look objectively at what we’ve achieved successfully at our parks around the world, all based on science, as opposed to setting an arbitrary standard that is precluding our cast members from getting back to work while decimating small businesses in the local community,” Chapek said.
The Disneyland Resort has remained closed since March when it closed due to COVID-19. Initially, many active cast members were furloughed. In September, 28,000 cast members were let go by Disney Parks, Experiences and Products. Then, just last week more cast members were furloughed specifically at the Disneyland Resort.
All of this comes as Disney Parks, Experiences and Products has been hit hard by the pandemic. In the fourth quarter alone, it lost 61% of its revenue which lowered it to $2.6 billion. Disney recorded segment operating losses of $1.1 billion. This also comes as the Disney Cruise Line has been closed for the entirety of the fourth quarter.
While the Disneyland Resort does not have an opening date on the horizon, Walt Disney World Resort is raising its capacity from 25% to 35%. Walt Disney World Resort reopened in July and had been operating at 25% capacity until now. Shanghai Disneyland reopened in May. Disneyland Paris reopened in July and is currently closed again. Hong Kong Disneyland reopened in September, then closed again, and has since reopened.
It is estimated that the entire Disney Parks, Experiences and Products lost $2.4 billion due to the impact of the pandemic.
