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 cents. 

“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 capacity, respectively. 

RCCL's brands are Royal Caribbean International, Celebrity Cruises and Azamara Cruises.


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