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Royal Caribbean cuts Q4 loss and achieves record ’05 profit
Royal Caribbean Cruises cut fourth quarter losses from $28.8 million to $3.6 million to achieve a second consecutive year of record profits in 2005.
The US line’s annual net profits were up to $716 million on revenues of $4.9 billion against $474.7 million on revenues of $4.6 billion in 2004.
Improved selling prices and better on board revenues helped give improved net yields of 7.4% although costs rose mainly due to $116 million of higher fuel costs.
The company expects 2006 net yields to increase by between 2%-4% in 2006 and fuel costs are estimated to rise by $90 million – a figure “substantially better” than anticipated due to a fall in at the pump prices and anticipated benefits of energy conservation initiatices and enhancements in types and sourcing of fuel, the company said.
A “surge in demand” for late bookings at the end of the fourth quarter drove up ticket prices while on board revenues were “exceptionally strong,” according to the company.
Chairman and CEO Richard Fain said: “This has been a very good quarter for the company and tops off another excellent year. It is unusual that everything comes together so well as it did in this quarter, but it certainly feels good when it does.”
The company revealed it had partially settled a lawsuit against the co-producers of the pod propulsion systems on its Millennium-class ships. It has received $38 million from Altrom Power Convesion and the suit remains pending against Rolls Royce.
Report by Phil Davies
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