American Classic Voyages (AMCV) has reported net income of $1 million, or $0.05 per share, on revenues of $62.5 million for the third quarter ended Sept. 30, 2000, compared to net income of $2.1 million, or $0.11 per share, on revenues of $57.5 million for the third quarter of 1999.

For the nine-month period, AMCV posted a loss of $4.1 million, or $0.20 per share, on revenues of $159.7 million this year, compared to a net loss of $1.7 million, or $0.10 per share, on revenues of $153.2 million last year.

CEO Philip Calian attributed the results to increased marketing costs and start-up expenses in conjunction with the launch of the Patriot as well as higher fuel costs.

AMCV is undertaking an aggressive expansion program with its United States Lines brand, building two new ships and introducing the Patriot (the former Nieuw Amsterdam) in the interim, and entering into coastal cruises with two new buildings for Delta Queen Coastal Voyages. Earlier this year, the company introduced the Columbia Queen, its third river boat, for the Delta Queen Steamboat brand.

But while AMCV may be investing and building for the future, it is losing money today and analysts are also voicing concern about the monopoly situation the company was supposed to enjoy in Hawaii.

Calian pointed to a survey by Norwegian Cruise Line (NCL) which reported that its passengers rated Hawaii third after the Caribbean and Alaska as the destination they would most like to visit. However, he noted that NCL's ship will only spend 38 hours in Hawaiian waters and only 21 hours dockside during its seven-day cruises, while the Patriot will spend 94 hours in Hawaiian waters and 84 hours in port. (An NCL schedule shows the ship in Hawaiian waters for 62 hours.)

As of last week, AMCV reported that the Patriot was 69 percent booked for the first quarter of 2001 at an average gross per diem of $189. Meanwhile, bookings on the Independence of the American Hawaii brand has been impacted by the Patriot and the ship's redeployment to Maui as homeport.

For the nine months ended Sept. 30, 2000, AMCV reported fare revenue per passenger night of $233, compared to $230 for the year ended Dec. 31, 1999, and $224 for 1998.