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Posted at 9:37 a.m., Wednesday, March 23, 2005

Celebrity Cruises cancels Hawai'i cruise

Bloomberg News Service

Cruise operator Celebrity Cruises canceled a 10-night Hawai'i voyage of its Infinity ship because of engine trouble, Miami- based Royal Caribbean said in a statement today.

The bearing will be replaced after the Infinity completes its current 14-night cruise through the Panama Canal. Celebrity expects the ship to return to its regular schedule April 6. The approximately 2,000 passengers who booked the cruise will receive a refund and a free Celebrity cruise before March 27, 2006.

Royal Caribbean Cruises Ltd., the world's No. 2 cruise operator that runs Celebrity Cruises, said the cancellation of the cruise to replace a bearing in the propulsion system will cut earnings this year by three to four cents a share.

The company said on Feb. 1 that net income would be $2.70 to $2.90 a share.

The company is forecast to have annual profit of $2.82, according to the average estimate of 20 analysts surveyed by Thomson Financial.

Celebrity, which has 10 ships, last canceled a cruise in March 2004 to repair the Infinity's thrust-bearing units, spokesman Michael Sheehan said. Royal Caribbean also has 19 ships in its Royal Caribbean International line.

Shares of Royal Caribbean fell 34 cents to $44.02 in New York Stock Exchange composite trading by mid-morning. Before today they had declined 19 percent this year.