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Marketing costs for additional ships for Hawaii and mainland cruises pulled down second-quarter earnings at American Classic Voyages Co., parent of American Hawaii Cruises, United States Lines and Delta Queen Steamboat Co. Hawaii cruise
line parent’s
net sinks 48%By Russ Lynch
Star-Bulletin
The Chicago-based parent company today reported a profit of $1.3 million, down 48 percent from $2.5 million in the second quarter of 1999.
The latest profit was equal to 6 cents a share vs. 14 cents a year earlier, with almost 20 percent more shares outstanding this year.
Second-quarter revenues of $58.3 million were up 5.6 percent from $55.2 million in the 1999 quarter.
Revenues were helped by increased yields at the American Hawaii operation, which consists of the 1,021-passenger SS Independence making round-the-islands cruises.
The company said it spent $3.8 million in the latest quarter to market the ms Patriot.
American Classic expects to take delivery of the 1,212-passenger ship, now the Holland America Line's Nieuw Amsterdam, in mid-October and refurbish it before its first voyage under the United States Lines flag begins Dec. 9.
The company is also building two 1,900-passenger cruise ships for the island cruises in Hawaii. The first will be delivered early in 2003.
Noting the competitive environment in the cruise industry, American Classic CEO Philip C. Calian said the company was "pleased with our yields from both our Hawaii and our Delta Queen operations."
The company's overall operations had fare revenues equal to $243 per passenger per night in the latest quarter, up 4.7 percent from $232 a year earlier.