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Royal Caribbean reports ‘significant’ impact on bookings following Concordia

Royal Caribbean reports ‘significant’ impact on bookings following Concordia

Cruise line Royal Caribbean has reported a “significant” negative impact on bookings following the Costa Concordia incident in January.

Reporting its annual financial results earlier, Royal Caribbean said it had curtailed marking activities and was waiting for the storm to subside.

First-quarter earnings per share could be 20-60 per cent lower than expectations, Royal Caribbean said, as a result of the sinking.

Costa Concordia went capsized off the coast of Italy on January 13th, with the loss of over 30 lives.

However, Royal Caribbean expects the impact to be relatively short-lived. A statement explained: “Most observers and potential guests understand that cruising is safe and that this incident was a very rare anomaly in an otherwise reliably safe vacation.”

The Miami-based line – which operates brands including Celebrity Cruises, Pullmantur and Azamara Club Cruises – did, however, report a slight increase in profits for 2011.

Net income increased to $607.4 million, or $2.77 per share, versus $515.7 million, or $2.37 per share, in 2010.

Revenues improved to $7.5 billion for the full year of 2011 compared to $6.8 billion for the full year of 2010 as a result of capacity increases and yield improvements.

“The year ended on a strong note which more than offset the rise in oil prices and the strengthening US dollar,” said Brian Rice, chief financial officer.

“For the year as a whole, adjusted for fuel price increases and geopolitical events, our earnings would have meaningfully exceeded the midpoint of our January 2011 guidance.”