Royal Caribbean reports impact on bookings after Concordia incident

by William ASTON on February 3, 2012

Cruise line Royal Caribbean today reported that January’s Costa Concordia incident has had a negative impact on bookings.

Reporting its yearly financial results, Royal Caribbean said that it had managed to curtail marking activities and is now waiting for a far business to resume as normal. First-quarter earnings a share could be 20 to 60 per cent less than expected as a result of Costa Concordia sinking.

On Friday 13 January, 30 people were killed when Costa Concordia capsized near to the Italian coast. Royal Caribbean expects the current impact to be short-lived, explaining in a statement that most observers or potential guests are understanding of cruising being safe with incidents such as the Costa Conrdia sinking a remarkably rare anomaly.

Based in Miami, Royal Caribbean also operates brands such as Azamara Club Cruises, Celebrity Cruises, and Pullmantur. It wasn’t all doom and gloom for the company as a slight profits increase was experienced in 2011. Its net income jumped to $607.4 million, $2.77 per share, against the $515.7 million, $2.37 per share, that was achieved in 2010.

Overall revenues improved to an impressive $7.5 billion for 2011 as a whole compared to 2010’s $6.8 billion - a direct result of increases in capacity and yield improvements. Brian Rice, Royal Caribbean’s chief financial offer, explained that 2011 ended on a positive note despite oil price increases which, had they not occurred, would have meant the company’s earnings for the year could have exceeded its final figure.

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