Royal Caribbean Comments on Earnings Impact from Coronavirus

Spectrum of the Seas

Royal Caribbean Cruises said that 2020 financial results will be impacted by approximately $0.10 per share due to three cancelled sailings aboard the Spectrum of the Seas.

“As has been widely reported, China has moved aggressively to contain the spread of the virus. As a result of these measures, and after consultation with national and local health authorities, the company has cancelled three sailings through Feb 8, on the high yielding Spectrum of the Seas, currently its only ship homeported in China,” the company said, in a prepared statement.

“If the travel restrictions in China continue until the end of February, the company estimates that this would further impact its results by an additional $0.10 per share.

“There are still too many variables and uncertainties regarding this outbreak to calculate the overall impact on the business. For example, we expect an erosion of consumer confidence in China could have an additional impact on load factor and rate in the region until the market normalizes. If these travel restrictions continue for an extended period of time, they could have a material impact on the overall financial performance of the company.”

For the winter sailing season, the company only has one ship based in China; two additional ships are scheduled to join in May and July 2020, respectively.

The company has scheduled a conference call for 10:00 a.m. Eastern Standard Time, Tuesday, February 4, 2020, to discuss the company’s fourth quarter 2019 financial results and full year 2020 guidance.

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