8-KRegulation FD

ROYAL CARIBBEAN CRUISES LTD 8-K Report, Regulation FD Disclosure (Nov 17, 2006)

Filed November 17, 2006For Securities:RCL

Summary

This 8-K filing from Royal Caribbean Cruises Ltd. (RCL) reports a press release announcing the cancellation of a single Caribbean sailing for the Celebrity Cruises' ship, _Millennium_. The cancellation, scheduled for the December 10, 2006 sailing, is necessary for the ship to enter drydock and replace a port thrust bearing in its propulsion system. The ship is expected to resume its regular schedule by December 17, 2006. While the disruption is unfortunate for affected guests, the company is offering full refunds and a complimentary cruise of equal value as compensation, along with a rebooking fee for travel agents. Management has apologized for the inconvenience and established a dedicated help desk. Importantly, the company anticipates this cancellation will have a negative financial impact of approximately $0.02 per share on its earnings.

Key Highlights

  • 1Celebrity Cruises' ship _Millennium_ will undergo drydock for a propulsion system repair (port thrust bearing).
  • 2The December 10, 2006, seven-night Caribbean sailing from Fort Lauderdale is cancelled.
  • 3The ship is expected to return to service by December 17, 2006.
  • 4Guests booked on the cancelled sailing will receive a full refund and a free future cruise of equal value (valid through Dec 31, 2007, with exclusions).
  • 5Travel agents will receive full commissions plus a $50 rebooking fee per stateroom for rescheduled clients.
  • 6A special help desk has been set up for guests and travel agents.
  • 7The cancellation is projected to negatively impact RCL's earnings by approximately $0.02 per share.

Frequently Asked Questions

The sailing is cancelled because the ship needs to enter drydock to replace a port thrust bearing in its propulsion system. This repair is necessary for the ship's continued safe operation.

Guests booked on the cancelled December 10 sailing will receive a full refund and a complimentary Celebrity cruise of equal value from North America, valid for a sailing departing on or before December 31, 2007 (excluding holiday sailings and Celebrity _Xpedition_).

The company anticipates that this cancellation will have a negative impact on its earnings, estimating the effect to be approximately $0.02 per share.

Travel agents will receive full commissions for the cancelled sailing and an additional $50 rebooking fee per stateroom when their clients reschedule their cruise.