Market Weakness Continues

Wachovia Capital Markets has lowered its earnings estimate for Royal Caribbean from $2.78 to $2.72 for 2008 and from $2.28 to $1.60 for 2009. According to Managing Director of Leisure Equity Research Tim Conder, of particular concern is the flattish/downward trend in pricing for Q1 and Q2 2009 sailings on Royal Caribbean’s newest ships, the Independence of the Seas and the Solstice. Conder had expected the pricing on the new ships to be trending flattish (at worst) to up following their introduction. The booking weakness continues for close in sailings as well as for longer lead-time cruises in Alaska and Europe.

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