/Royal Caribbean warns coronavirus will hit earnings

Royal Caribbean warns coronavirus will hit earnings

Published on Friday, February 14, 2020

Royal Caribbean Cruises has cancelled a total of 18 sailings in south-east Asia and modified other itineraries in response to the continuing threat of coronavirus.

The cruise line also warned its full-year earnings will be hit by the outbreak and has reported ‘softer’ bookings not just in Asia, but also elsewhere.

Last week, Royal Caribbean said it was cancelling eight cruises out of China until March 4 and warned first-quarter earnings would be down.

It’s now said the 18 cancelled cruises will cut its full-year earnings per share by 65 cents, adding that cancelling all its remaining sailings in Asia through the end of April, would reduce its earnings per share by another 55 cents in 2020.

Royal Caribbean chairman and CEO, Richard D. Fain, said: “It is important that every organisation acts responsibly, and we have already taken aggressive steps to minimise risk through boarding restrictions and itinerary changes.

“Our shipboard and shoreside teams have been working tirelessly through these circumstances and I want to thank them for all of their extraordinary efforts.

“We appreciate our responsibility to our guests and to each other, and our focus on public health is unwavering.”

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