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Escalating Fuel Prices Cutting Into Royal Caribbean's RevenueJune 29, 2009 By: David Eisen
It seems like just as one threat to the cruise industry dies down, another pops up. Rising fuel prices are back in the news, which means cruise lines will be paying more to gas up their ships. Royal Caribbean Cruises Ltd. said Monday that escalating fuel prices, along with the H1N1 "swine flu" outbreak, will hurt its full-year earnings results.
Since providing its outlook in April, the company's fuel costs have climbed about 45 percent.
Caribbean also announced earlier this month that the swine flu will
lower its full-year earnings by about 22 cents per share.
We are still waiting to see what Carnival Corp. says about rising fuel costs and the effect on its bottom line.