Royal Caribbean reported a second-quarter net income of $24.7 million, or $0.11 per share, which is better than a net loss of $3.7 million last year during the same time.  

Royal Caribbean noted that its earnings during the quarter include an impact of $0.05 per share related to the Grandeur fire and a non-cash charge of $0.07 per share accounting correction related to the company's affinity credit card program.

For the full year outlook, Royal Caribbean's outlook remains essentially unchanged from the previous update in May.  The impact of the Grandeur of the Seas fire and the strengthening of the US dollar have already been accounted for.

Royal Caribbean chairman Richard Fain was happy about the results, "It is rewarding to see things coming together. While the operating environment has been frustrating, our bookings trajectory is looking good and I'm thrilled to see our cost initiatives beginning to pay off. Exploiting this positive momentum will help us take our returns and our profitability to the next level."

Total revenues increased to $1.88 billion, from $1.82 billion last year. Analysts expected revenue of $1.86 billion for the quarter.  In addition, 19 analysts polled by Thomson Reuters expected the company to report profit of $0.09 per share for the quarter, which Royal Caribbean came out ahead of. Analysts' estimates typically exclude special items.

Officials from the Port Authority of New York and New Jersey have approved a proposal by Royal Caribbean to redevelop the Cape Liberty cruise port in Bayonne, New Jersey.

The Board of Commissioners approved the plan earlier tonight at a meeting.  The purpose of the proposal is to allow the port to handle Royal Caribbean's newest cruise ship, Quantum of the Seas, which will arrive in November 2014.

Port Authority Director Bill Baroni commented on the decision, "This new lease extension will bring to Bayonne one of the most modern cruise terminals in the country. Royal Caribbean is going to invest $50 million in the new terminal and two parking facilities for people going out of Bayonne."

Baroni believes Quantum of the Seas will also give Bayonne's economy a boost.

"This new terminal will help create jobs in construction and will have a long term economic benefits on our region.  When a ship like this calls a port that ship brings about $1 million a trip to the city in local economic activity. Once completed, the terminal is expected to bring in 600,000 people every year." 

Baroni did say that Royal Caribbean's proposal still needs to have its finances approved by the Bayonne Local Redevelopment Authority and once that happens, construction will begin in a few months.  The project should be completed by 2014 right before the new cruise ship arrives.

Royal Caribbean will fund the project in conjunction with the city of Bayonne, which would issue $70 million in bonds. 

Once completed, the new terminal will see passenger volume rise by 25 percent to 600,000 per year, according to Baroni.

Speaking at a hearing today on cruise safety by the U.S. Senate Committee on Commerce, Science and Transportation in Washington, Royal Caribbean CEO Adam Goldstein promised Royal Caribbean will voluntarily publish more data about crimes on their cruises.

Royal Caribbean is one of three of the largest cruise ship operators appearing before the committee today after U.S. Senator Jay Rockefeller introduced legislation yesterday that would require disclosure of the crime data and make the Department of Transportation responsible for consumer protection on cruises.

“We are proud of this initiative and believe that it addresses many of the concerns raised with the limited public reporting required,” by current law, Goldstein said in prepared remarks.

Goldstein said Royal Caribbean will begin posting the expanded data for all of its cruise divisions starting August 1, 2013 and the information will date back to the fourth quarter of 2010.

Royal Caribbean has proposed a plan to the Port Authority of New York and New Jersey to allow the cruise line to make significant changes to the Cape Liberty cruise terminal in Bayonne, New Jersey that would be needed for the arrival of Quantum of the Seas.

Quantum of the Seas, which is Royal Caribbean's newest cruise ship and about to start construction, will be home ported in Bayonne.  The changes Royal Caribbean is proposing are aimed at accommodating the brand new ship, which arrives in late 2014.

The Port Authority's board of commissioners will vote on the plan later today.

Port Commerce director Richard Larrabee says the agency would lose about $1 million a year in rent at the cruise port. But he says that will be more than offset by increased passenger and parking revenue tied to the new ship.

Royal Caribbean has been working hard, along with the rest of the cruise industry, to prepare its cruise ships for new air pollution rules set to go into effect in 2015.  The fear is these new laws will make North American cruises more expensive and so Royal Caribbean has been slowly rolling out a solution to its cruise ships that will aim to be compliant without being too expensive.

The new rules are part of the North American Emissions Control Area (ECA), which surrounds the United States and Canada and extends up to 200 miles offshore.

Royal Caribbean's plan is to add "scrubbers" to their ships.  Scrubbers remove pollutants from engine exhaust as a kind of filter.  The downside to scrubbers is the technology is still a work in progress and requires a variance permit from the Environmental Protection Agency.

Royal Caribbean is planning on installing scrubbers on Quantum of the Seas and Anthem of the Seas when they are built.  They've already been testing scrubbers on Liberty of the Seas and Independence of the Seas and the EPA has granted trial exemptions for six Royal Caribbean ships.   In addition, it has authorized an “emissions averaging” solution in certain subregions of the ECA in which Royal can use fuels with differing sulfur levels, as long as the average equivalent sulfur emissions meet the ECA limits.

The 2013 AFTA National Travel Industry Awards winners were announced and Royal Caribbean took home the honor for "Best Cruise Operator – Australian Based Operation".

Australian Federation of Travel Agents CEO Jayson Westbury said Royal Caribbean was bringing "big, yummy, affordable" ships to Australia.

The NTIA is an annual event in Australia, where leaders in the travel field are recognized by members of the The Australian Federation of Travel Agents.

Royal Caribbean also won an award in last year's event for, "Best Cruise Operator - International Based Operation".

It was hot this week outside and the Royal Caribbean news was heating up as well with a little bit of news about some new yet-to-be-built Royal Caribbean cruise ships emerging.

So crank up the air conditioning and enjoy this week's Royal Caribbean news roundup!

Royal Caribbean News

• A company has been selected to provide all of the steel for the third Oasis-class cruise ship that will be built.
• Royal Caribbean is promising to keep a cruise ship in Baltimore despite other cruise lines leaving.
• Royal Caribbean is offering a sale on Christmas week cruises until the end of this month to spur some new holiday traditions.
• We now know handicapped accessible cabin information onboard Quantum of the Seas.
• Do you love labadoozies as much as we do? This week we took a look at this signature Royal Caribbean drink.
• If you're looking to book an excursion on your own, check out our guide to third party excursions.
• Royal Caribbean has scheduled its second quarter financial results call for later this month.

Join us for the first ever Royal Caribbean Blog Cruise!

We're so excited to announce the first ever group cruise for readers and staff of RoyalCaribbeanBlog.com aboard Quantum of the Seas!  This is an exclusive group where we are inviting you, our readers, to join us on one of the first Quantum of the Seas sailings on an 8-night cruise to the Caribbean.

This Royal Caribbean Blog group cruise is all about enjoying this brand new ship with other fans who are big fans of Royal Caribbean.  Don't miss this opportunity to check out the brand new cruise ship as well as be a part of exclusive events for those that book with our group!

For more details on booking the cruise, the itinerary and prices, check out the Royal Caribbean Blog group cruise page and if you have any questions, email me!

Royal Caribbean Around the Internet

Travel Agent Central has a comment by a Royal Caribbean official released following a scathing article on using travel agents to book a cruise.

eTravel Blackboard has an article about why the 2014/2015 summer cruise season in Australia will be the biggest yet.

Florida Today has the results of a new study that says the cruise industry is boosting the local economy in South Florida.

Cruize Cast has a new podcast episode out looking at Carnival Cruise Line.

As part of the 2013 Bacardi Cruise Competition, Royal Caribbean won first prize for the best martini cocktail.  The winning drink, called the Med-Mary, was crafted by bartender Enrico Basile.

Royal Caribbean will be including the winning drink as part of their fleet-wide menu.  The drink was created by Basile aboard Navigator of the Seas.

Want to make it at home?  Here's the recipe:

INGREDIENTS

• Salt and pepper rim crust 3 cherry tomatoes
• 2 drops balsamic vinegar 2 basil leaves
• 1/2 oz BACARDI® Superior Rum 5 ml simple syrup
• Top up MARTINI® Prosecco Sparkling Wine

PREPARATION

1. Mix the salt with a hint of pepper and make the crust on the rim of the Martini glass or a flute Champagne glass
2. Muddle the 3 cherry tomatoes in a Boston mixing glass
3. Add the drops of balsamic vinegar, the leaves of basil, the BACARDI® Superior Rum and the simple syrup
4. Shake well and double strain in the glass
5. Top up with MARTINI® Prosecco Sparkling Wine