Royal Caribbean Cruises saw first quarter profits drop to $46.1 million from $78.2 million a year earlier due to “minor voyage disruptions”.
Six cruises were shortened or cancelled during the three months to March 31.
However, the world’s second largest cruise group after Carnival Corporation said the impact was expected to be offset during the rest of the year.
Booking volumes for the past three months have been up about 16% year over year, with bookings for the past eight weeks up by more than 20%, stronger than typical post-Wave periods, the company reported.
A record booking week was experienced at the end of February, described as an unusual time for so much activity.
“While the promotional environment in the Caribbean has contributed to the strong booking volumes, demand has also increased for other itineraries,” the company said.
“Demand for European sailings from all key sourcing regions and for China sailings remained particularly strong throughout the period and double digit yield improvements are expected for both products.”
Chairman and chief executive Richard Fain said: “It is gratifying to see 2014 developing methodically along such a positive trajectory.
“Our business strategy is proving itself nicely while strength in our global markets is more than compensating for a highly promotional Caribbean.”
Chief financial officer Jason Liberty said: “Despite pressures in the Caribbean, the diversity provided by our global footprint is proving its value.
“This model has allowed us to take advantage of the strong demand for our European and Asian products, while successfully navigating pressures in the Caribbean.”
Onboard revenue yields increased 3.4% as the parent of lines such as Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises, continues to see the benefit of fleet upgrades and onboard revenue management initiatives.
The company expects to incur $23 million in restructuring and related charges and approximately $11 million from the first quarter operating loss incurred by non-core businesses divested from Pullmantur.
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