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

Contracts

Kvaerner in Statoil Unmanned Platform Project

Kvaerner say that Statoil has awarded it a concept study related to a standardised, unmanned dry tree wellhead platform for the Oseberg Future Development project.

CACI Named MSC Logistics Prime Contractor

CACI International Inc says it has been selected as a prime contractor to provide logistics support to the U.S. Navy’s Military Sealift Command (MSC) on the Worldwide

DoD Awards US$117-M New Orleans Dredge Contract

The US Department of Defense informs that it has awarded Boh Bros. Construction Co., LLC, New Orleans, Louisiana, a US$116,956,672 firm-fixed-price contract with

Finance

Odfjell 2Q Results In Line with Expectations

Chemical Tankers had an EBITDA of $24 million, compared with $17 million in the first quarter. Improved utilization with only minor interruptions of trade. Time-charter results were up by 10%.

Container Manufacturer Reports Profit Plunge

World-leading container manufacturer and logistics services provider Singamas Container Holdings Limited (Singamas) has  announced its unaudited interim results for the six months ended 30 June 2014.

Bid to Rescue Clyde Shipbuilder Ferguson

Jim McColl, one of Scotland's richest men, has tabled a bid to rescue collapsed Clyde shipbuilder Ferguson and aims to return the yard to its former glory by creating hundreds of jobs,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Navigation Offshore Oil Pipelines Salvage Ship Repair Ship Simulators Winch
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: 0.1070 sec (9 req/sec)