Royal Caribbean Expected To Cut 400 Jobs
Tuesday, 22 July 2008
Royal Caribbean Cruises is set axe 400 jobs after reporting lower earnings in the second quarter of 2008. The net income for the second quarter stands at $84.7million, down from $128.7 million for the same period in 2007.
Royal Caribbean now says it plans to retrieve costs of $125 million each year by cutting back on non-core business activities. The cruise line has said that rising fuel prices have eaten into too much of their profits Royal Caribbean CEO Richard Fain stated:
“This is unacceptable and we are evaluating everything we do to find ways to do it more efficiently and effectively...This is a difficult period for virtually all businesses, but we are determined to improve our operating results through tight cost controls.”
Royal Caribbean have also estimated that at current prices, fuel expenses for 2009 would be approximately $890m net of existing hedges and that a $10 change in the price of oil would change this expense by $59m. The Caribbean cruise specialist did however report a higher net income in the first six months of 2008 compared to last year, notching up a $22.8 million increase.
Royal Caribbean have also estimated that at current prices, fuel expenses for 2009 would be approximately $890m net of existing hedges and that a $10 change in the price of oil would change this expense by $59m. The Caribbean cruise specialist did however report a higher net income in the first six months of 2008 compared to last year, notching up a $22.8 million increase.
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