Royal Caribbean hurt by weak European demand

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Associated Press

Posted on February 4, 2013 at 10:02 AM

Updated Monday, Feb 4 at 11:01 AM

NEW YORK (AP) — Cruise giant Royal Caribbean lost $392.8 million in the fourth quarter because of losses associated with its Spanish cruise line, Pullmantur.

The world's second-largest cruise line wrote down $413.9 million due to a substantial drop in bookings and prices in Spain following the government's austerity measures there. Royal Caribbean also blamed the January 2012 sinking of the Costa Concordia, owned by rival Carnival Corp., for a drop in traffic.

The loss for the three-month period ending Dec. 31, was $1.80 a share. That's down from a profit of $36.6 million, or 17 cents a share, during the same quarter last year.

Its revenue from passenger tickets and from onboard sales was $1.8 billion, up 1.7 percent.

Royal Caribbean stock was up 56 cents to $37.35.

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