Royal Caribbean Cruises’ profits almost halved in the third quarter of this year compared to the same period in 2008.
Net income for the quarter was $230.4 million compared to $411.9 million last year. Revenues were $1.8 billion compared to $2.1 billion in the third quarter of 2008.
Net yields for the quarter were down 16.5% against 2008, but “somewhat better” than the company’s previous guidance that they would be down about 18%.
Royal Caribbean Cruises chairman and chief executive officer Richard Fain said the cruiseline saw more strength than expected during the peak season but has been experiencing more pricing pressure on some traditionally soft fall season sailings.
He said: “Overall, the business environment is largely unchanged and stable. We expect the yield deficit to continue to improve in the fourth quarter and we remain optimistic that 2010 will bring year-over-year yield improvement.”
Booking volume since mid-September was up about 40% compared to same period last year, with “favourable comparison” for cruises departing both in the fourth quarter and next year.
However, executive vice-president and chief financial officer Brian Rice admitted the “pricing environment is still not what we’d like it to be”.
The company said the H1N1 swine flu virus had caused yields to be down about two percentage points during the third quarter.
It projects net yields to decline 7% to 8% in the fourth quarter and about 14% for the full year.
Royal Caribbean took delivery of the 5,400-passenger Oasis of the Seas, the world’s largest cruise ship, last week. The vessel is now on the way to Fort Lauderdale and enters service on December 1.