Royal Caribbean Cruises Ltd. (RCCL) has raised the estimated
impact from the coronavirus outbreak to 90 cents per share, up from the 65
cents it previously reported.
In a regulatory filing, RCCL said that due to the outbreak, there
has been a drop in demand for cruises and guest cancellations. Other virus-related
factors impacting RCCL’s business: travel restrictions, an unavailability of
ports and destinations, ship redeployments, and an inability to source crew,
provisions and supplies from certain places.
RCCL also said that it has canceled 30 sailings in Asia and
modified several itineraries, and that if it canceled all remaining sailings in
Asia through the end of April, the impact would increase by an additional 30
“There are still too many variables and uncertainties
regarding the impact of this outbreak on our business in Asia and elsewhere to
reasonably forecast the full impact on our business, including what our yields
and earnings for 2020 will be,” the filing said.
RCCL said that in 2019 it sourced 24% of its cruise guests
from the Asia-Pacific region and that the compound annual growth rate in cruise
guests sourced from that market was approximately 24% from 2015 to 2019.
RCCL said that prior to the Covid-19 outbreak, its sailings
in China were trending “particularly well both in terms of rate and volume” and
were expected to represent 6% and 4% of full-year and first-quarter 2020
RCCL's brands are Royal Caribbean International, Celebrity Cruises and Azamara Cruises.