In all, the company posted a loss of nearly $5 billion for the third quarter, including a $2 billion loss in its parks, experiences and products segment.
Disney’s domestic parks – Disney World and Disneyland, as well as Disneyland Paris, resorts and cruise operations were closed for the entirety of the quarter and the final two weeks of the previous quarter.
The company’s parks, experiences and products segment revenue declined 85% to $1 billion compared with the same quarter in 2019. Operating income fell $3.7 billion to a loss of $2 billion.
Disney’s media networks segment helped offset the losses from parks, experiences and products. Across all segments, the coronavirus pandemic’s impact cost the company $2.9 billion in April, May and June.
“This is obviously a very uncertain time,” CEO Bob Chapek said during an earnings webcast Tuesday. “We should be in good shape once consumer confidence returns.”
Disney has felt the full impact of the coronavirus pandemic, from its theme parks, resort hotels and retail stores, to its cruise lines and TV and film production.
The coronavirus surge in Florida has resulted in more cancellations and lower attendance than the company was expecting, with the park operating at lower capacity, Disney executives said Tuesday in the earnings presentation.
Chapek said Disney World had experienced a falloff in visitors coming to the park from out-of-state. Long-distance travel remains well below last year’s volume, and airlines have cut flights from their schedules.
The impact of the park’s reopening on the company won’t be known until it releases fourth-quarter results.
“We expect demand will grow when the COVID situation in Florida improves,” said Christine McCarthy, Disney’s chief financial officer.