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
Phil Davies
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Airlines suspend Madagascar services following unrest and army revolt
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airbnb eyes a loyalty program but details remain under wraps
Air Mauritius reduces frequencies to Europe and Asia for the holiday season