Swine flu hits cruising hard

SWINE FLU’S impact on the cruise sector could reach $140M, given today’s new estimates by Royal Caribbean.

Royal Caribbean predicted a total negative impact of $0.22/share. A Royal Caribbean representative confirmed to Fairplay that this equates to about $47M. Carnival had previously predicted an impact of $0.05-$0.10/share. A Carnival spokesperson confirmed to Fairplay that this equates to roughly $40-80M. Based on the conservative assumption that Carnival and Royal Caribbean account for 90% of total industry impact, this suggests that swine flu could cost the cruise sector roughly $140M. Today, Royal Caribbean cited costs of vessel deviations from Mexican ports and “ensuing price pressures in the Mexican market”. Its Pullmantur division was especially hard hit.

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