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Royal Caribbean Cruises Ltd. (RCCL) reported record net income for the third quarter 2007 of $395 million

Royal Caribbean Cruises Ltd. (RCCL) reported record net income for the third quarter 2007 of $395 million,or $1.84 per share, compared to net income of $345.4 million, or $1.63 per share, in 2006. The company said the results were better than expected mainly due to stronger late bookings driving better yields. Revenues for the third quarter 2007 increased to $2 billion from $1.6 billion in the same quarter last year. The company also raised its earnings-per-share guidance for the year to the high end of its previous guidance despite higher crude oil prices. Fuel prices were up 7.1 percent versus the third quarter of 2006, but costs dipped about 1.9 percent mainly due to energy saving and other fuel initiatives. The average at-the-pump price for the quarter was $473 per metric ton versus $442 per metric ton in 2006.

RCCL said it expected to have a 12.4 percent increase in capacity in 2007, driven by its Spanish tour company, Pullmantur; the April delivery of Liberty of the Seas; and a full year of Freedom of the Seas. Based on estimates, and assuming that fuel prices remain at today's levels, the company expects its full year 2007 earnings per share to be $2.80 to $2.85, and expects fourth quarter 2007 earnings per share to be 32 to 37 cents. Looking into early 2008, booking levels and ticket prices are up "nicely" in the first quarter 2008, the company said. For the full year 2008, overall booking levels and ticket prices are up versus levels achieved at the same time last year. "While it is still too early to quantify projections for the full year 2008, management is optimistic that the current demand environment will result in positive yield performance for the full year," the company said.

Spirit of Nantucket holed by wooden object while cruising the Intra-Coastal

The Spirit of Nantucket is undergoing a damage assessment at Colonna’s Shipyard in Norfolk, Va., where it was towed on Saturday.  An unidentified wooden object tore a gash in the vessel’s hull early Thursday morning while the Spirit of Nantucket cruised the Intracoastal Waterway near Norfolk.  All 66 passengers were safely evacuated after the captain intentionally eased the ship onto a mud shoal. 

 

The Corps of Engineers later removed a piece of debris from the ships hull.  The debris is believed to have gashed the hull of the Spirit of Nantucket, forcing its captain to beach the vessel to keep it from sinking in the Thursday incident. A Corps of Engineers spokesman, said the debris is about 40 feet long and 14 feet wide and is believed to be either a bulkhead or part of a barge. It's unclear how long the debris had been in the waterway. But given its size and location, authorities have said they believe it fell there recently — possibly within the past week — because it would have been hard for it to not have been struck by some craft such as the Spirit of Nantucket.

The ship has been moved to a Norfolk shipyard for repair of the foot-long, two-inch-wide gash in its hull. None of the 66 passengers or crew aboard was hurt in the incident which occurred as the vessel was on a 10-day cruise from Virginia to Charleston, S.C.

The Coast Guard had restricted usage of the busy waterway, which runs for more than 1,000 miles from Norfolk, Virginia, to Miami, until the debris was hauled out on the weekend and the waterway has now been reopened for traffic.

The aborted voyage was the last of the season as Spirit of Nantucket completed its U.S. East Coast deployment. The vessel is scheduled to transfer to Alaska for the 2008 season where it will sail under the name Spirit of Glacier Bay.

Windjammer Cruises cancel another series of sailings
Windjammer Barefoot Cruises, which has not operated a cruise in roughly two months, cancelled three more cruises scheduled to depart on Nov. 17, Nov. 24 and Dec. 3. Passengers booked on those cruises -- and the company has many loyal passengers who made reservations despite the ongoing financial troubles -- received a notice signed by Danny Walsh, Windjammer's operations manager and director. "There are just so many difficulties, obstacles and legal issues that stand in our path to continue with enough time for these cruises to sail," according to the memo, posted online at www.JammerBabe.com. "We truly apologize for the extreme short notice and for the inconvenience for lack of a better word. We are working quite often 16-hour days to get the ships home and the Legacy sailing. Please, please, please understand we are not giving up and Windjammer will sail again. We are pretty certain that the target date of Dec. 8 will allow us to prepare the vessel and the company to restore our normal semi-professional, Windjammer-style charm."

The memo said those who do not reschedule a cruise would be issued a refund "in a short time. It's your money and you will get it back. Regrettably, Windjammer will not be able to cover any additional air or hotel charges incurred and associated with a re-booking. Also, if you request a refund, we are unable to cover any air costs if you request a cruise refund unless the flight was booked through us. Even if we wanted to we do not have access to funds yet. We are focusing everything on proper service and logistics beginning with the Legacy."

Windjammer's last scheduled cruise on Nov. 3 -- billed as the relaunching of the company with one ship, Legacy -- was cancelled at the last minute, leaving some passengers to scramble for accommodations in Costa Rica. Windjammer has four sailing ships, which are all docked at ports in the Caribbean and Central America. The company has refrained from issuing press releases, and did not post a notice of the latest cancellation on its website. However, the website still appears to be accepting payment by credit card or PayPal and is advertising an $895 fare.

Ambassadors International appoints Blake Barnett as CFO
Ambassadors International appointed Blake Barnett as cfo, replacing Brian Schaefgen, who left in June. Barnett most recently served as cfo for the California Division of Albertsons Grocery Stores.
In May, when Schaefgen announced plans to step down, Ambassadors chairman and ceo Joe Ueberroth said the company would seek a replacement with cruise and marine industry experience. Instead, it tapped an executive with an extensive consumer brands resume.

Before Albertsons, Barnett spent almost seven years with YUM! Brands and Pepsi Co. He was the cfo for a start-up within YUM! Brands and also held several senior financial positions with Taco Bell.

Prior to Taco Bell, Barnett worked in various financial and information technology capacities for Unocal and Times Mirror.

Ueberroth called Barnett ‘a successful financial executive with a strong operational perspective.’