As has been widely reported, China has moved aggressively to contain the spread of the virus. As a result of these measures, and after consultation with national and local health authorities, the company has cancelled three sailings through Feb 8th, on the high yielding Spectrum of the Seas, currently its only ship homeported in China. The company estimates that this (which included the Chinese new year’s cruises) will impact 2020 financial results by approximately $0.10 per share. If the travel restrictions in China continue until the end of February, the company estimates that this would further impact its results by an additional $0.10 per share.
There are still too many variables and uncertainties regarding this outbreak to calculate the overall impact on the business. For example, we expect an erosion of consumer confidence in China could have an additional impact on load factor and rate in the region until the market normalizes. If these travel restrictions continue for an extended period of time, they could have a material impact on the overall financial performance of the company.
For the winter sailing season, the company only has one ship based in China; two additional ships are scheduled to join in May and July 2020, respectively. For all of 2020, China represents about 6% of the company’s capacity.
The company has scheduled a conference call for 10:00 a.m. Eastern Standard Time, Tuesday, February 4, 2020, to discuss the company’s fourth quarter 2019 financial results and full year 2020 guidance. The call will be available on-line at the company’s investor relations website, www.rclinvestor.com. To listen to the call by phone, please dial (877) 663-9606 in the US and Canada. International phone calls should be made to (706) 758-4628. There is no passcode or meeting number. A replay of the webcast will be available at the same site for a month following the call.
Royal Caribbean Cruises Ltd. (NYSE: RCL) is a global cruise vacation company that controls and operates four global brands: Royal Caribbean International, Celebrity Cruises, Azamara and Silversea Cruises. We are also a 50 percent joint venture owner of the German brand TUI Cruises and a 49 percent shareholder in the Spanish brand Pullmantur Cruceros. Together, these brands operate a combined total of 61 ships with an additional 17 on order as of December 31, 2019. They operate diverse itineraries around the world that call on all seven continents. Additional information can be found on www.rclcorporate.com. www.royalcaribbean.com, www.celebritycruises.com, www.azamara.com, www.silversea.com, www.tuicruises.com, www.pullmantur.es, or www.rclinvestor.com.