The Star Princess fire will cost Princess
Cruises parent company, Carnival Corp., about $32 million, or four
to five cents per share.
One person died and
11 people were injured as a result of the fire, which started as
the ship sailed between Grand Cayman and Jamaica and burned 100
cabins.
The Star Princess,
which was last week was in the Grand Bahama Shipyard in the
Bahamas, will be repaired at the Lloyd Werft yard in Bremerhaven,
Germany.
Six Star Princess
cruises were canceled through May 15.
The cause of the
fire, which has not been determined, is being investigated by the
U.K.s Marine Accident Investigation Branch. The MAIB will lead the
investigation of the fire on the Bermuda-flagged ship at the
request of Bermuda authorities.
The U.S. National
Transportation Safety Board and members of the FBIs fire
investigation team are also participating.
Terry Williams, a
spokeswoman for the NTSB, said the investigation will take 12 to 18
months.
Princess said it
would give passengers booked on the canceled cruises full refunds
for the cruises and any nonrefundable air charges, as well as a 25%
credit toward future cruises. Princess also said it would protect
travel agent commissions on the canceled cruises.
Princess expects
the ship to be back in service on May 15, in time to begin its
European season with a departure from Copenhagen.
The earnings hit
comes on the heels of Carnivals first-quarter earnings report,
released on March 23, which showed a 19% year-over-year decline in
earnings.
Bear Stearns had
lowered its 2006 earnings estimate on Carnival to $2.88 per share
from $3 following the companys first-quarter financial
report.
After the Star
Princess fire, it again revised its 2006 estimate to $2.83 per
share.
To contact
reporter David Cogswell, send e-mail to [email protected].