Posted at 11:10 a.m., Tuesday, August 14, 2001

Rough quarter for cruise parent

Advertiser Staff

American Classic Voyages, the parent company of Hawai'i's two locally based cruise ships, blamed weak economic conditions in Hawai'i for a second-quarter loss of $7.7 million.

The Miami-based operator of the Independence and Patriot cruise ships reported a net loss of 36 cents a share, compared with net income of 6 cents a share, or $1.3 million, in the second quarter of 2000. Revenue was $78.1 million, up 28 percent from a year ago, the company said.

"Our financial results in the second quarter reflect continued pressure on yields as a result of a weak economic environment, particularly in Hawai'i," said Phil Calian, the company's chief executive, in a statement. Calian said he expects yields and occupancy rates to improve in the second half of the year.

Hawai'i's two ships account for about one-fourth of the total capacity at American Classic, which also operates several boats on the Mainland.

Today's earnings report was scheduled for release last week but postponed because of issues relating to the company's order for two new 1,900-passenger cruise ships from Northrop Grumman. The new ships are over budget and as much as 18 months behind schedule, according to recent reports.