Royal Caribbean Profit Falls 44 Pct In 3Q

ASHLEY M. HEHER

CHICAGO (AP) — Travelers are still vacationing, but they're spending less when they do, Royal Caribbean Cruises Ltd. said in reporting that its third-quarter profit and revenue tumbled because it deeply discounted fares.

The cruise line said its traditionally slow fourth quarter will be even worse than usual, as last-minute travelers — particularly those from Florida who account for one-fifth of the vacationers on winter Caribbean cruises — stay home to wait out the economy.

"Like many other travel companies, we saw more strength than we expected during our peak season but have been experiencing more pricing pressure on some of our traditionally softer fall season sailings," Chairman and CEO Richard D. Fain said in a statement when the results were released Tuesday.

The operator of Royal Caribbean International and Celebrity Cruises said its profit fell 44 percent for the quarter to $230.4 million, or $1.07 per share, as its revenue skidded 17 percent to $1.76 billion.

Executives tried to quell concern that reservations for tours on the company's newest flagship — the world's largest cruise ship called Oasis of the Seas, which set sail to its home port last week — have been sluggish.