Disney said on August 2, 2021 that its parks, experiences and products division returned to profitability for the first time since the pandemic began.
The highly contagious Delta variant has caused a resurgence in the COVID-19 virus in recent weeks, particularly in Central Florida where Disney World is located. On July 28, 2021, Orange County mayor Jerry Demings proclaimed a sate of emergency.
Disney World eased restrictions in April 2021, which led to a boost in attendance. While guest capacity hasn’t returned to pre-pandemic levels, it improved as mask mandates were loosened during the quarter.
Disney World plans to continue to re-open and increase capacity despite the threat of the Delta variant. Large convention groups are canceling, however people still flock to the parks.
The company reintroduced mask requirements for all indoor spaces, including attractions and merchandise locations, and on all forms of Disney transportation. Guests can still remain mask-free in outdoor areas, or, if indoors, while actively eating or drinking at a restaurant or other designated dining locations. Social distancing markers have not being returned and fireworks displays continue which attract dense crowds.
Revenue at Disney’s parks, experiences and products segment jumped 307.6% to $4.3 billion, up from $1.06 billion during the same period last year. The great thing for the company is that if guests contract the virus in their theme park, the symptoms do not show for 14 days which means the guest likely brought the virus home to share with friends and family. The Delta variant however has a shorter incubation period, 3 to 4 days, instead of 5 to 6 days and it has higher viral loads. Meaning that people are more infections faster and can spread the virus among other guests at the parks. It is impossible to prove the virus was picked up in the park. It just as well could have been contracted on a plane or restaurant. Deniability equals profitability.
Disney’s Chief Executive Officer Bob Chapek said, “In terms of the Delta variant, we see strong demand for our parks continuing.“ Disney World will be celebrating their 50th anniversary this year, so it is importent to the company to keep increasing the capacity in the park. Should some guests die that is a small price to pay for growing profits.