Royal Caribbean latest to warn of coronavirus profit impact

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The wonder of the Seas due for China deployment 2020

Royal Caribbean Cruises has joined larger rival Carnival Corporation in warning of the potential “material” financial impact of the ongoing coronavirus outbreak.

The world’s second-largest cruise company has now cancelled a total of 18 sailings in south-east Asia and also modified several itineraries as a result of travel restrictions in place and “related circumstances.”

The number of cancelled cruises has risen from the eight out of China reported by the company last week.

RCC also reported “softer bookings” across the broader business, not just Asia.

It is in regular communications with global health authorities after China and other countries moved “aggressively” to contain the spread of the virus.

Like other cruise firms, the owner of brands such as Royal Caribbean International, Celebrity Cruises, Silversea and Azamara, has implemented measures to protect passengers and crew.

These include denying boarding to those that have travelled from, to or through mainland China or Hong Kong in the past 15 days and performing mandatory specialised health screenings on at-risk passengers and crew.

The company “is assessing the developments constantly and will update these measures as needed”.

RCC added: “Taken together, these measures have an estimated impact on the company’s financial performance for 2020 of approximately $0.65 per share.

“While not currently planned, if the company was to cancel all of its remaining sailings in Asia through the end of April, it would impact 2020 financial performance by an additional $0.55 per share.

“There are still too many variables and uncertainties to make a reasonable forecast for 2020.

“While the early impact due to concerns about the coronavirus is mainly related to Asia, recent bookings for our broader business have also been softer.

“If the travel restrictions and concerns over the outbreak continue for an extended period of time, they could materially impact the company’s overall financial performance.”

Chairman and chief executive Richard Fain said: “It is important that every organisation acts responsibly, and we have already taken aggressive steps to minimise risk through boarding restrictions and itinerary changes.

“Our shipboard and shoreside teams have been working tirelessly through these circumstances and I want to thank them for all of their extraordinary efforts. We appreciate our responsibility to our guests and to each other, and our focus on public health is unwavering.”

Carnival Corporation, owner of quarantined ship Diamond Princess in Japan after an outbreak of coronavirus on board, was the first to warn of a “material impact” on its financial results.

Guests on quarantined Diamond Princess allowed to disembark.

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Guests on quarantined cruise ship Diamond Princess will be allowed to disembark to stay in a shoreside facility.

Princess Cruises said Japanese health officials are planning voluntary disembarkation with the most medically vulnerable guests given priority.

The update came as another 44 cases of the virus were confirmed on Diamond Princess to bring the total up to 218.

More: Coronavirus triggers Carnival Corporation profits warning

A Princess Cruises spokesperson said:” Princess Cruises has been informed that over the next several days, Japanese health officials are planning voluntary disembarkation of guests to complete their quarantine period at a shoreside facility.

“From the information available it is our understanding that this will be a phased approach, with the most medically vulnerable guests in the first phase, including older adults with pre-existing health conditions.

“According to officials, guests in the first group will be tested for the 2019 novel coronavirus. If the test is positive, they will be transported to a local hospital for further evaluation and isolation. If the test is negative, they will be given the option to leave the ship and be transported to a quarantine housing facility.

“These are the details provided by health officials about the temporary facilities:

• The housing facility includes individual rooms and individual bathrooms

• There are no clinics at these facilities. Prescription medication will be provided, but medical care will require transport to a hospital or clinic.

• The food available will not accommodate dietary preferences but will accommodate certain medical conditions.  The meals provided will be Japanese bento-style boxes. No Western meals will be available.

“Princess Cruises confirmed that all guests on Diamond Princess remain welcome to stay on board through to the end of the quarantine period.

“Princess Cruises also confirms the announcement, from Japan health officials, of 44 new positive cases of Coronavirus onboard Diamond Princess.”

In a letter sent to the ship’s crew, Princess Cruises president Jan Swartz said the line was “deeply grateful” and “incredibly proud” of staff on Diamond Princess.

She revealed that the crew would receive two months paid leave for “much-needed rest” once they had left the quarantined ship.

“We will also handle your flights to return home and your job will be protected to return for another contract,” she added.

Coronavirus: Cruise lines cancel and change itineraries amid mounting travel restrictions

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Quantum of the Seas

Cruise lines have responded to a wave of travel and entry restrictions from countries across southeast Asia by cancelling and changing itineraries amid the coronavirus outbreak. Harry Kemble rounds up all the latest developments.

Royal Caribbean International has cancelled two Quantum of the Seas sailings departing from Singapore on February 15 and February 24.

Affected passengers have been given full refunds, the line said.

A Royal spokesperson added: “Royal Caribbean’s number one priority is ensuring the health and welfare of our guests and crew.

“We will continue to monitor conditions and will share other itinerary adjustments should they become necessary.

“The Singapore market remains of great importance to us and we look forward to returning there very soon.”

Royal Caribbean Cruises has lifted its ban on passport holders from China, Hong Kong and Macau after adopting the controversial policy last week.

A statement from Royal Caribbean Cruises, parent of Royal Caribbean, Celebrity Cruises, Azamara and Silversea confirmed the reversal on Tuesday.

Every passenger who has travelled from, to or through mainland China, Hong Kong and Macau 15 days prior to the departure date is still banned from boarding any of Royal’s vessels.

Norwegian Cruise Line has pulled its entire Asia programme for the newly refurbished ship, Norwegian Spirit.

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Norwegian Spirit with its new hull design.

All sailings between 15 and December 7 have been dropped and full refunds are being offered, along with 10% future cruise credit.

The line also said it would cover up to $300 per person for any air change fees.

“While it is always our intention to maintain original itineraries, at times, unforeseen circumstances require us to make modifications,” the line said. “We appreciate our guests’ patience during this time.”

Celebrity Cruises has cancelled Celebrity Millennium’s sailing departing from Hong Kong on February 15 and altered two Celebrity Constellation itineraries to avoid Singapore and Thailand.

Constellation will spend more time in Cochin, Goa and Mumbai, instead of calling into Phuket, Thailand.

Cunard ship Queen Mary 2 is to miss several ports in southeast Asia and will sail direct to Fremantle, Australia, during its world cruise.

The vessel had been scheduled to call into Phuket, Thailand; Pulau Penang Island and Klang in Malaysia; Singapore; and Hong Kong.

Cunard said the “various travel and entry restrictions…are increasingly impacting ship itineraries and connecting travel” across the world.

Holland America Line (HAL) ship Westerdam was stopped from docking in Laem Chabang, Thailand, a day after the ship had been diverted from Japan.

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Holland American cruise ship Westerdam who got turned away from Thailand yesterday (Tuesday)

On Tuesday, HAL said: “We are actively working on this matter and will provide an update when we are able.”

Princess Cruises on Wednesday confirmed a further 39 passengers onboard Diamond Princess tested positive for coronavirus. The total has now risen to 174 confirmed cases out of 3,700 passengers and crew on board.

The ship is the largest centre of cases outside China.

P&O Cruises is removing calls into Shanghai on March 5-6 and Hong Kong on March 9-10 as part of Arcadia’s world cruise and will announce alternative ports “as soon as possible”.

The UK line said: “We are very closely monitoring and assessing the impact of the latest developments and health advisories, as well as various travel and entry restrictions which are increasingly impacting ship itineraries and connecting travel.

“We are actively seeking to mitigate these risks to our guests and crew, and are making appropriate adjustments to our operations to protect all onboard our ships.”