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Royal Caribbean’s Fain: “Pricing is miserable” – Oasis bookings robust

Posted by Anita Dunham-Potter On April - 23 - 2009

Royal Caribbean International announced their first quarter earnings today and beat Wall Street projections. The company reported a first quarter loss to $36.2 million, or a loss of 17 cents per share, well below guidance of a loss of 30 cents to 35 cents. Royal Caribbean cites stable close-in bookings and better than expected cost cutting initiatives for the results. Wall Street had expected a loss of 34 cents per share. A year ago, Royal Caribbean posted a profit of $75.6 million, or 35 cents per share.

Royal Caribbean’s chairman and CEO, Richard Fain says current “pricing is miserable” but notes on the bright side a more stable revenue environment for the rest of the year. The company reports that net yields are projected to come at the lower end of previous guidance of down 12 to 13 percent. Reduced revenue expectations are largely offset by an improved cost outlook, and the company now projects 2009 EPS of around $1.35, a nickel below previous guidance.

First quarter revenues were $1.3 billion, down from $1.4 billion from same quarter last year. Net yields came in at down 13.5 percent, somewhat better than guidance of down 14 percent to down 16 percent. Costs per available berth were cut 7 percent, beating guidance of down 4 to 6 percent.

“Given the horrible economy, I am encouraged by a more stable revenue environment and I am proud that our people have been able to reduce expenses and deliver better than expected results,” said Fain. Royal Caribbean described Oasis of the Seas bookings as “extremely robust” and expected to have a significant accretive impact on yields.

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One Response to “Royal Caribbean’s Fain: “Pricing is miserable” – Oasis bookings robust”

  1. hosting says:

    I know you can get some great deals with Royal Caribbean at the moment. Shame about the loss, they really are my favorite cruise company. We have been on lots of Caribbean cruises on some of there larger ships.

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