Hurricane Dorian cost Royal Caribbean $27M
Despite that, the company reported 'record' third-quarter earnings.
Hurricane Dorian cost Royal Caribbean $27 million in July, August and September, the company said Wednesday.
The cruise line closed three Florida ports over a weekend as the storm approached, and diverted six ships to deliver supplies to the Bahamas and evacuate people from Nassau. It also donated $1 million toward relief efforts.
"Hurricane Dorian had an unusual, one-time impact on our financial performance," Royal Caribbean said in an earnings report. "These measures impacted 16 sailings and made this the most disruptive storm in the company's history."
Royal Caribbean Cruises, Freedom of the seas cruise ship anchored in Labadee, Haiti, Oct. 12, 2009. Labadee is a port located on the northern coast of Haiti. It is a private resort leased to Royal Caribbean Cruises.
The storm will cost the company around $30 million over all of 2019, the company said.
Despite the cost of Dorian, Royal Caribbean reported "record" third-quarter earnings -- with GAAP earnings of $4.20 per share and adjusted earnings of $4.27 per share.
ROYAL CARIBBEAN DONATES $1M TO HURRICANE DORIAN DISASTER RELIEF
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| RCL | ROYAL CARIBBEAN GROUP | 241.76 | -2.74 | -1.12% |
ROYAL CARRIBEAN OPENS ITS $250M 'PERFECT DAY' PRIVATE ISLAND
"Our business continues to thrive and exceed our expectations," Richard D. Fain, chairman and CEO, said 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."
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Hurricane Dorian devastated the Bahamas in August -- leading to at least 61 deaths, several hundred people missing, and as much as $7 billion in damages.