Royal Caribbean Cruises Ltd, the world's No 2 cruise operator, reported a narrower quarterly profit on Monday due to a doubling of fuel costs, and announced a cost-cutting plan to save US$125 million a year.
'Too much of our profitability is being eroded by the increase in fuel prices,' chairman and CEO Richard Fain said.
Net income fell to US$84.7 million, or 40 cents per share, from US$128.7 million, or 60 cents per share, a year earlier. Over the period, fuel prices rose 55 per cent.
As part of the cost-savings, the company said it would eliminate about 400 onshore positions. It will also discontinue some non-core operations.
As a result of the restructuring, the company said it expected to incur charges of about US$15 million, or 7 cents per share, in the third quarter.
'Too much of our profitability is being eroded by the increase in fuel prices,' chairman and CEO Richard Fain said.
Net income fell to US$84.7 million, or 40 cents per share, from US$128.7 million, or 60 cents per share, a year earlier. Over the period, fuel prices rose 55 per cent.
As part of the cost-savings, the company said it would eliminate about 400 onshore positions. It will also discontinue some non-core operations.
As a result of the restructuring, the company said it expected to incur charges of about US$15 million, or 7 cents per share, in the third quarter.