Terrorism Takes Estimated $20 Million Toll on Royal Caribbean's Financials

Monday, September 17, 2001
Richard Fain, Chairman and CEO of Royal Caribbean Cruises Ltd. today provided his comments and insight on the current situation and how it has impacted the company's operations.

"We are devastated by the losses that so many of our fellow Americans have suffered," Fain said.

"While it is hard to focus on business as usual, we know that it is important to do so, and we are determined to do just that.

"I know the business community would like to know what these events mean to our company. While it is obvious that the world is a very different place than it was a week ago, it's hard for us to fully assess what this means to our company.

Nevertheless, we can provide some preliminary information that we hope is helpful.

"The biggest immediate challenge we have faced has been with air transportation. With the closure of the nation's airports, there were many difficulties in getting our guests to and from the ships over the past week. We were moved by the determination of some of our guests to get to their ships. Some people drove (as much as 3,500 miles), and we were eventually able to find flights for many of the rest. Despite the transportation challenges, we had more than 30,000 guests embark on our ships for cruise vacations over the last several days. These sailings were about two-thirds full. Those ships that operate in heavy drive-in markets operated at close to 90 percent occupancy. With the return of air transportation, we expect this week to be much better and are already seeing this with those ships that have embarkation today.

"It will take us some time to figure out the total financial impact of these events, but we have some preliminary figures for the past week. The biggest cost was loss of revenue, but we also had extra security costs, lodging and transportation costs, etc. Our best guess at the moment is that the financial impact for the week following September 11 will be in the range of $20 million to $25 million. We will provide additional guidance on the financial impact going forward as more information becomes available.

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Ocean Rig, Petrobras Agree to $1.1b Drill Ships Lease

Cyprus-based Ocean Rig UDW Inc said on Monday that it signed a $1.1 billion three-year contract with Brazil's state-run oil company, Petroleo Brasileiro SA, to

Rolls-Royce to Design, Equip Stern Trawler for Ramoen

The Armon shipyard in Gijón, Spain has entered into a contract to build a new Stern Trawler for the Norwegian fishing company Ramoen. The vessel will be a Rolls-Royce design,

India to Develop Iran's Chabahar Port

India will float a company to develop Iran's Chabahar Port, a government statement said on Saturday, as New Delhi aims to take advantage of a thaw in Tehran's relations with world powers.

Finance

Nordic American Offshore Declares Dividend

Nordic American Offshore Ltd. today announced that its board of directors has declared a dividend of $0.45 per common share for the third quarter 2014. This is the same as for the second quarter 2014.

Bollore Africa Logistics Sees Profit Plunge in H1

First half 2014 profit at shipping company Bollore Africa Logistics plunged to 5.89 billion CFA francs ($11.48 million) from 9.45 billion CFA francs in the same period last year,

Maduro Says Venezuela's 2015 Budget to Put Oil at $60

Venezuela's 2015 budget will be based on a target oil price of $60 dollars per barrel, President Nicolas Maduro said on Friday night, but he repeated expectations that prices will recover.

 
 
Maritime Careers / Shipboard Positions Naval Architecture Offshore Oil Pipelines Port Authority Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1092 sec (9 req/sec)