Royal Caribbean Group Evaluating Ship Sales

Empress of the Seas

Will Royal Caribbean Group sell or retire more cruise ships? The company is evaluating all options according to Jason Liberty, executive vice president and chief financial officer, speaking on Royal Caribbean’s second quarter earnings call on Monday

Liberty said that over the years, the company has sold an average of one to two ships per year

He noted that the typically philosophy is that the ship needs to have a plan to generate a sizable return, and the company would invest a ship to make it a strategic fit into a fleet. If not, the company has traditionally looked to sell a ship.

“We put a lot of money into these ships; these ships do exceptionally well,” Liberty continued. ”It’s a difficult decision to part with a ship because it generates so much cash.”

Liberty elaborated that Royal Caribbean is evaluating all opportunity, whether that is ship sales or other actions.

“The three ships related to Pullmantur are in the scrapping process,” he added.

The Sovereign and Monarch are currently being dismantled in Turkey, while the Horizon has yet to arrive.

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