Royal Caribbean Cruises took a hit of more than $55 million due to an “unprecedented” number of hurricanes in the summer quarter yet still achieved record profits.
Most of the impact of the hurricanes was from lost revenue, but there were also direct costs associated with the storms and the company’s humanitarian efforts.
There were also “significant timing shifts” across a wide range of activities as expenses were shifted between quarters to adjust to the storms.
“The unprecedented series of hurricanes this summer devastated many people and places in Texas, Florida and the Caribbean and our sympathies go out to all those who suffered and are suffering losses,” Rccl said.
“The repair and recovery efforts have been intense and most of the affected destinations served by our cruise ships have already been reopened or are about to be reopened.
“Financially, the storms were unusually impactful because of when and where they hit and the net effect was a cost to the company in excess of $55 million or $0.26 per share.”
The company still expects to generate earnings for the year within the increased range of guidance it provided prior to the storms.
The owner of Royal Caribbean International Celebrity Cruises and Azamara Club Cruises also reported strong early booking trends for 2018 with higher load factors.
“While still early in the booking cycle, the view for 2018 is encouraging and the company expects another year of solid yield and earnings growth.” Rccl said.
Booked load factors and APDs are higher than same time last year while the booking window has continued to extend.
The company saw net income for the three months to September rise to $752.8 million from $690.9 million in the same period last year.
Chairman and chief executive, Richard Fain, said: “The recent storms presented extraordinary challenges and I am extremely proud of the generosity, strength of character and sense of social responsibility displayed by our employees and the industry as a whole.”
Chief financial officer, Jason Liberty, added: “Delivering record earnings during a period of such unprecedented disruption is a testament to the strength in demand for cruising and for our brands.”
Management is excited by the 2018 introduction of Symphony of the Seas in Europe next spring and Celebrity Edge in Fort Lauderdale in December 2018, the company added.