The epidemic, which originated in the Chinese province of Hubei and killed more than 1,300 people, has hit cruisers severely as travel restrictions and fear of the virus spreading have resulted in travel to the Far East being canceled.
Last week, Royal Caribbean said it had canceled eight cruises from China by March 4 and warned of a 25 cent impact on first quarter earnings.
The company said the 18 canceled cruises would cut earnings per share for the full year by 65 cents and warned that canceling all remaining cruises in Asia by the end of April would reduce earnings per share by a further 55 cents in 2020.
Royal Caribbean had previously forecast an adjusted earnings of $ 10.40 to $ 10.70 per share for 2020 that did not take into account the effects of the virus.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Shares of company were down 1.4% at $ 112 in extended trade, dragging peers Carnival Corp. and Norwegian Cruise Line lower. “data-reactid =” 27 “> The company’s shares fell 1.4% to USD 112 in expanded trading, which affected Peers Carnival Corp. and Norwegian Cruise Line lower.
Earlier this week, Carnival, which also ceased operating ports in China, announced an impact of 55 to 65 cents per share on earnings in 2020 if operations in the rest of Asia had to be stopped.
(Reporting by Uday Sampath in Bengaluru; editing by Vinay Dwivedi)