Despite a 49 percent increase in revenue, Regency Cruises has reported a 44 percent decrease in net income for the second quarter of this year, compared to the same quarter last year.
Net income for the second quarter was $471,000 compared to $849,000 for the second quarter in 1988. Net income from operations the first six months fell sharply from $3,627,000 in 1988 to $59,000 this year. Total income for the first six months, including interest income, was $869,000.
The reduced earnings were attributed to the extra costs the company incurred when it had to fly passengers to its ports of departure in the Caribbean, because of the strike at Eastern Airlines.
At the same time, one of its ships, the Regent Star, was out service for seven weeks following a collision, and the company suffered from a drop in bookings and increased marketing costs to rebuild momentum.
Last year Regency Cruises also suffered when Hurricane Gilbert struck its homeport, Montego Bay in Jamaica, and when the turbulent political situation in Panama forced it to partially reposition one of its vessels from a successful itinerary halfway into the Canal.
In a prepared statement, William Schanz, Chairman and CEO, noted that the summer season appeared favorable and that the bookings for the Regent Star in the Caribbean had showed market resilience with July and August cruises almost sold out. He also stated that load factors for the Regent Sun and Regent Sea in Alaska - the company's most lucrative program - were very high.
Schanz also noted that the fall Caribbean season promised to be very competitive and that the company was marketing all three cruise itineraries there with aggressive promotions and advertising in a number of markets.
At presstime, Regency's shares traded for $1.87 down from its 12-month high of $2.75.