Royal Caribbean Sees Significant Impact from Cruise Ship Fire

Published May 30, 2013 8:10 AM by The Maritime Executive

Royal Caribbean Cruises Ltd said it expects Monday's fire aboard one of its ships to have a significant impact to its results.

The cruise operator expects a 10 cent reduction in earnings per share, but did not specify the period for which the forecast was made.

"The extent of the financial impact was relatively high because the affected sailings were during the premium summer season," Chief Financial Officer Jason Liberty said in a statement.

The ship - Grandeur of the Seas - was carrying more than 2000 passengers on a seven-day cruise when it caught fire, which the company said occurred in an industrial area on the aft of the ship.

The incident is the latest in a list of headline-grabbing mishaps that have plagued the company and rival Carnival Corp . In March, the company's Vision of the Seas was hit by a norovirus outbreak.

The Grandeur of the Seas has been taken out of service and the company expects repairs to take about six weeks. The ship is expected to return to service for its July 12, 2013 sailing date, Royal Caribbean said.

Shares of the company were down marginally in trading after the bell. They had closed at $35.10 on Wednesday on the New York Stock Exchange.