Ambassadors International saw net income
for the second quarter ended jump to $5.8 million, up from $1.7
million for the same period last year. The company recorded revenue
of $80.4 million for the second quarter, up from $29.7 million for
the second quarter in 2006. Ambassador reported an increase in
operating costs of $53.7 million compared to the second quarter in
During the quarter
ended June 30, Ambassadors completed its acquisition of Windstar
Cruises from Holland America Line, adding three new vessels to its
fleet and bringing the total number of vessels operated during the
quarter to nine, compared with the four ships at the same time last
Together with the
Windstar acquisition, total cruise revenue increased $25.4
On May 14, however,
Ambassadors' Empress of the North, a 223-passenger Majestic America
Line vessel, ran aground in Alaska. Though no passengers or crew
were injured, the ship spent eight weeks in drydock for repairs and
cost the company about $5.2 million in repairs, passenger
relocation and crew expenses. Ambassadors anticipates recovering
$4.1 million from insurance and does plan on sailing the Empress of
the North in 2008, when the company expects to see better
Ambassadors' Contessa ship, a vessel that sails in Alaska, "will
likely not run in 2008," Joe Ueberroth, chairman, president and
CEO, said during the company's earnings call. The company said that
though the Contessa had received good ratings from its passengers,
it has been operating at a loss.
occurred Aug. 1, when the company received news that the historic
174-passenger, Mississippi River ship, the Delta Queen, was not
granted another exemption from Congress from a law banning
passenger vessels with wooden superstructures.
Ueberroth, once the Delta Queen retires in November 2008, the
Mississippi Queen will replace her capacity in 2009.
To contact reporter Michelle Baran, send e-mail to [email protected].