Royal Caribbean issues update on Coronavirus outbreak

In:
14Feb2020
By: 
Matt Hochberg

Royal Caribbean Cruises Ltd. officially commented on the Coronavirus situation, and how it is impacting the company's bottom line.

Thus far, a total of 18 sailings have been canceled, along with several other modified itineraries.

Taken together, these measures have an estimated impact on the company's financial performance for 2020 of approximately $0.65 per share.  

Royal Caribbean also provided a financial performance forecast if they were to cancel all of its remaining sailings in Asia through the end of April, which would impact 2020 financial performance by an additional $0.55 per share.  Canceling the remaining sailings in Asia through the end of April is not currently planned.

"It is important that every organization acts responsibly, and we have already taken aggressive steps to minimize risk through boarding restrictions and itinerary changes," said Richard D. Fain, chairman and CEO.  "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."

Mr. Fain also mentioned that while the early impact due to concerns about the Coronavirus is mainly related to Asia, recent bookings for our broader business have also been softer.

If the travel restrictions and concerns over the outbreak continue for an extended period of time, they could materially impact the company's overall financial performance.