Royal Caribbean Cruises Ltd. reports that it has cancelled three sailings through February 8 on Spectrum of the Seas due to the spread of the coronavirus, which is currently its only ship homeported in China. The company made the announcement as part of the release of the date for its fourth quarter earnings call.
Royal Caribbean said that these cancellations, which include Chinese New Year cruises, will impact its financial results by $0.10 per share, with an additional impact of $0.10 per share if travel restrictions in China continue until the end of February.
“There are still too many variables and uncertainties regarding this outbreak to calculate the overall impact on the business,” the company said in a written statement. “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.”
Spectrum of the Seas is Royal Caribbean’s only ship to homeport in China for the winter season. Two additional ships are scheduled to join in May and July 2020. For all of…