American Classic Voyages (AMCV) reported net income of $1.3 million, or $0.06 per share, on revenues of $58.3 million for its second quarter ended June 30, 2000, compared to net income of $2.5 million, or $0.14 per share, on revenues of $55.2 million for its second quarter last year.
AMCV reported a net loss of $5.1 million, or $0.25 per share, on revenues of $97.3 million for the first half of 2000, compared to a net loss of $3.8 million, or $0.24 per share, on revenues of $95.8 million during the same period last year.
The 48 percent decrease in net income during the second quarter, despite a 5.6 percent increase in revenues, resulted from start-up costs and pre rnarketing for the new Columbia Queen vessel as well as the launch of Delta Queen Coastal Cruises and United States Lines, both of which are now taking bookings. Results for this quarter include $3.8 million in marketing costs for U.S. Lines' Patriot (ex-Nieuw Amsterdam), and $400,000 in marketing costs for Delta Queen coastal vessels.
AMCV reported that fares for the Delta Queen Steamboat Co. averaged $285, with occupancy of 95 percent in the second quarter of 2000 versus $279 at 94 percent in 1999. Fares at American Hawaii Cruises averaged $196 in second quarter 2000 at 105 percent occupancy versus $182 at 106 percent last year.
Regarding forward bookings for the second half of 2000, Delta Queen was showing advance reservations at 78 percent occupancy, averaging $304, and American Hawaii at 100 percent, at $208. This compares to 88 percent at $296 in 1999 for Delta Queen, and 108 percent at $190 for American Hawaii.
Asked about the current pricing environment, CEO Phil Calian commented, "We're not seeing any direct effect from the price bashing that's occurring in the Caribbean. But it would be naive of us to believe that there's no connection at all. If Bert and Ethel are deciding on whether they'll go to Alaska and Hawaii, and they can go to Alaska for $100 a day, they may hold off on going to Hawaii. But we can say that the general flow of people traveling to Hawaii is not experiencing the discounting that's now being seen in the cruise industry."