Top Headlines

US, China drive RCCL interim profit rise

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 30 October 2019 30 October 2019

Royal Caribbean Cruises Ltd (RCCL) the world’s second largest cruise shipping group, has reported higer third quarter and nine month interim profits than last year on back of strong markets in the US and China, offsetting negative impact from Hurricane Dorian.

Group net profit rose to $890.3 million in the third quarter from $810.4 million a year earlier, while operating income rose to $890.8 million from $799.7 million. Revenues increased to $3.18 billion from $2.79 billion.

In the first nine months of the year, net profit increased to $1.63 billion from $1.49 billion and operating income to $1.78 billion from $1.53 billion. Revenues reached $8.43 billion compared to $7.16 billion year on.

"Our business continues to thrive and exceed our expectations," said Richard D. Fain, chairman and CEO in a statement. "While Hurricane Dorian had a negative impact, stronger demand for our brands and our key itineraries exceeded our expectations. Excluding the hurricane impact, we are not only able to maintain our yield and earnings guidance, but to raise both slightly as a result of particularly strong performance in the US and China."

The results include the negative impact of $27 million or $0.13 per share from itinerary disruptions and relief efforts related to Hurricane Dorian. and Adjusted Net Income was $836.3 million or $3.98 per share. Earnings per share rose to $4.21 from $3.88 in the third quarter.

Gross yields rose by 6.6% and net yields by 6.4% in constant currency, slightly better than guidance when considering the impact of the hurricane, which reduced revenue by $21 million and slightly reduced yields.

Gross cruise costs per available passenger capacity day (APCD) increased 7.5% in constant currency. Net cruise costs excluding fuel per APCD were up 11.0% in constant currency terms.

The reduction in capacity and relief efforts related to the hurricane negatively impacted this metric by 150 basis points. Absolute costs for the quarter were significantly better than expected, due to timing.

Norwegian Spirit to receive $100 million upgrade in January-February 2020

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 29 October 2019 29 October 2019

Norwegian Cruise Line, the contemporary market unit in Norwegian Cruise Line Holdings Ltd (NCLH), said it would invest more than $100 million to revitalise the 1998 built Norwegian Spirit that is of 75,904 gross tons.

The ship will enter dry dock in Marseille, France on 2 January next year for a nearly 40-day renovation that is part of the line’s Norwegian Edge programme. After the refit, the ship will emerge featuring 14 new venues, additional staterooms and an expanded Mandara Spa.

New complimentary dining venues will be introduced including an additional main dining room, Taste; the 24-hour eatery, The Local Bar and Grill; the all-day dining outlet, Garden Café; the Great Outdoors Bar; and Waves Pool Bar. Making their debut are Bliss Ultra Lounge and Spinnaker Lounge, which features the Humidor Cigar Lounge.

Splash Academy, the children’s waterpark, will be replaced with the adults-only retreat Spice H2O, a daytime lounge featuring two new hot tubs and a dedicated bar, which transforms into an after-hours entertainment venue.

Mandara Spa will double in size to nearly 7,000 square feet and include a relaxation area with heated loungers, a new Jacuzzi room, a sauna, steam room and water therapy experience. The expansion of Pulse Fitness Center will allow guests to begin or maintain their fitness routine while at sea. The ship will also debut contemporary hull art.

In addition, the Company is announcing the introduction of Onda by Scarpetta on board Norwegian Spirit, joining the portfolio of critically acclaimed Scarpetta restaurants in New York City and the Hamptons, N.Y.; Miami; Las Vegas; Philadelphia; Newport, R.I.; London; and aboard Norwegian Encore debuting this November.

The name Scarpetta is derived from the Italian expression, 'fare la Scarpetta,' which means to savor a meal to the last bite. Onda, or 'wave' in Italian, will adapt the same ethos and bring the charm and effortless elegance of its urbane Scarpetta sister to the sea. Reaffirming the Company’s commitment to providing elevated dining experiences across the fleet, guests will enjoy the rich and bold flavors the modern Italian restaurant will be known for, including a selection of beautifully prepared seafood.

Norwegian Spirit will sail out of dry dock in February 2020 to offer cruises in the Far East, Africa and Europe, including 10 new ports of call. It will be the first in the Company’s fleet to visit Bali (Celun Bawang), Jakarta and Surabaya, Indonesia; Beppu, Kumamoto, Nagoya and Tokyo, Japan; Taipei (Keelung) Taiwan; and Yangon, Myanmar.

Following two, 20-day cruises to Greece, Israel, Egypt and Abu Dhabi from Rome (Civitavecchia); and Seychelles, Madagascar and South Africa from Dubai; she will offer a series of destination-rich voyages to Southeast Asia, China and Japan from Singapore; Hong Kong, China; and Tokyo and Yokohama, Japan through 2020.

Delivery of Costa Smeralda delayed further

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 29 October 2019 29 October 2019

Costa Crociere, the Italian unit in the Carnival Corporation & plc group, said the delivery of its LNG powered flagship Costa Smeralda would be delayed further.

The ship, which is built by the Meyer Turku shipyard in Finland, would now depart on its first cruise just before Christmas, while previously the departure had been set for the end of this month. This again was a month later than the originally envisaged date.

“As a result of this delay, the first Costa Smeralda cruise will depart from Savona on December 21, 2019. The itinerary, which will be repeated until May 16, 2020, remains unchanged: Savona (Saturday), Marseilles (Sunday), Barcelona (Monday), Palma de Majorca (Tuesday), Civitavecchia (Thursday) and La Spezia (Friday),” the company said in a statement.

“Costa Cruises is sincerely sorry for what has happened and is informing the travel agencies and guests booked on the Costa Smeralda cruises from November 30 to December 20, 2019, which can no longer take place,” it continued.

The ship is based on a platform shared by four brands of the Carnival group – Costa Crociere, AIDA Cruises, P&O Cruises and Carnival Cruise Line. AIDAnova, the first unit of the class that was built for AIDACruises at Meyer’s Papenburg shipyard, was also delivered late. The roughly 185,000 gross ton ships are the largest units in the fleet of the Carnival group that comprises about 100 ships.

Fincantieri cuts Windstar’s Star Breeze in half, inserting new mid-section in Palermo, Italy

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 17 October 2019 17 October 2019

It’s only appropriate that the culture that gave birth to the Renaissance is where Windstar Cruises ushers in a new era as the leader in small ship cruising by making the final cut to the hull of Star Breeze to “stretch” the first of its three ships and begin the process of inserting a new 84-foot mid-section (25.6 meters) that will help evolve and transform the Windstar experience.

The first Windstar ship to emerge from this transformation, Star Breeze, will sail from Barcelona to Lisbon on February 20, 2020, and celebrate re-inaugural activities in North America at the Port of Miami on March 19, 2020.

While many a ship has been “stretched,” as it is referred to in the cruise industry, the complexity and significant undertaking with Star Breeze (and sister ships Star Legend and Star Pride in 2020) is not just cosmetic or experience-based. It also involves removing and replacing the engines to ensure a cleaner, more environmentally-friendly operation as the ships sail through some of the world’s most beautiful waters and call at small, enchanting ports for decades to come.

“The $250 Million Star Plus Initiative is the most complex and comprehensive small ship lengthening, engine replacement, and renovation project undertaken in cruising, and we are very proud to be working with Fincantieri, the leader in major cruise ship renovations,” stated Windstar Cruises President John Delaney. “The slightly larger ships and new enhancements will significantly build upon the signature onboard environment Windstar is famous for. The social and friendly public spaces on the ships create a welcome chemistry with guests and the crew.”

This is the first of three new mid-ship sections to be constructed and inserted as part of Windstar’s $250 Million Star Plus Initiative, which is committed to the expansion and transformation of the cruise line’s three Star-class vessels. In addition to the all-important propulsion system and “back-of-house” investment, what guests will welcome most are the two new restaurants including the eclectic, Spanish-styled Cuadro 44 by Anthony Sasso and a modern, alfresco Star Grill by Steven Raichlen capitalizing on the ships’ increase in deck space.

That additional space also translates into a new pool and whirlpool on the upper deck, a re-imagined, world-class spa and fitness center, a new retail shop, and more. In addition, every bathroom on the ship with be re-built and fitted to modern luxury standards. The new 84-foot (25.6 meters) mid-section will also welcome most of the 50 new suites. With the new section, Star Breeze will now be able to accommodate 312 passengers (previously the ship accommodated 212 guests). The expanded ship will also allow for more crew and maintain the enviable 1.5-to-1 guest-to-service staff ratio.

Vice President of Fleet Operations for Windstar Christopher Prelog said, “This is a momentous undertaking for Windstar and a major milestone. Thanks to our partners at Fincantieri, we are literally witnessing the evolution of a cruise line. Star Breeze and her sister ships have always been coveted for their beauty, pleasing lines, and cozy yet seemingly spacious environments. The significant investment and the transformation of these ships will be stunning, and we are all eager for our guests to experience the renaissance of Windstar Cruises.”

Vice President Ship Repair and Conversion of the Fincantieri Services Division Andrew Toso stated, “Today is a big day. A proud day. A day of amazing accomplishment by Windstar, Fincantieri, and our shipyard in Palermo. Cutting Star Breeze in two, inserting a new section, replacing the main engines and diesel generators is evidence of our ability in these kinds of highly sophisticated and complex operations, which require engineering and design skills, as well as project management competence that represent the state-of-the-art in the industry.”

Windstar is transforming three of its Star-class ships – Star Breeze, Star Legend, and Star Pride – and renovating each ship in succession at Fincantieri’s Shipyard in Palermo, Sicily, Italy. Work will be complete in late 2020.

The second ship to undergo the transformation, Star Legend, will debut in Barcelona on July 2, 2020. The third and final ship, Star Pride, will be complete with the departure of Star Pride from the shipyard in fall of 2020, with her first cruise sailing from Barcelona on November 20, 2020.

Royal Caribbean to deploy next Oasis-class ship in Asia

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 10 October 2019 10 October 2019

Royal Caribbean International has announced the homeport and name of its fifth Oasis Class ship. The next ship to join the cruise line’s innovative lineup will be named Wonder of the Seas and set sail from Shanghai, China. The details were revealed by Royal Caribbean President and CEO Michael Bayley at a global cruise industry conference event held in Shanghai. Slated for a highly anticipated debut In 2021, the world's largest cruise ship will introduce a new era of cruising as the first of the renowned Oasis-class to sail the Asia Pacific.

“Royal Caribbean is known for its innovation and constantly pushing the boundaries of what’s possible, and an Oasis-class ship in China is proof of that,” said Bayley. “Wonder of the Seas will redefine the ultimate vacation and be revolutionary in her own right, and she marks one of Royal Caribbean’s most exciting chapters to come.”

Today also marked an important milestone for Wonder of the Seas. Halfway around the world in Saint-Nazaire, France, Wonder’s keel was lowered into place at the Chantiers de l’Atlantique shipyard, marking the start of the ship’s physical construction. During what is known as the keel-laying ceremony, a 970-ton block, measuring 155 feet by 65 feet, was lifted onto the building dock with a 1,400-ton crane.

“Royal Caribbean International has been a market leader in China for more than 10 years by consistently showcasing bold deployment strategies and driving growth of the new to cruise market,” said Dr. Zinan Liu, Chairman, Royal Caribbean Asia. “The deployment of Wonder of the Seas is a manifesto of new era for Royal Caribbean.”

Wonder of the Seas will be part of the Oasis-class of ships, the largest in the world, and will combine the iconic seven-neighborhood concept that her sister ships feature along with a bold lineup of thrilling experiences, imaginative dining, unparalleled entertainment and the latest technology. More information on Wonder’s itineraries and brand-new adventures will be announced soon.