Royal Caribbean Cruises commented on the ongoing Coronavirus outbreak. As has been widely reported, China and other countries are moving aggressively to contain the spread of the virus.
The company communicates regularly with the CDC, the WHO and other health authorities around the world and has implemented measures to protect its guests and crew. These include denying boarding to those that have traveled from, to or through mainland China or Hong Kong in the past 15 days and performing mandatory specialized health screenings on at-risk guests and crew.
The company is assessing the developments constantly and will update these measures as needed. As a result of the travel restrictions in place and related circumstances, the company has now cancelled a total of 18 sailings in Southeast Asia and has also modified several itineraries.Taken together, these measures have an estimated impact on the company’s financial performance for 2020 of approximately 65c 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 55c 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 the company’s 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.