Firm's revenue grows 21pc but takes a hit on fuel costs and accounting losses
Star Cruises, the world's third-largest cruise liner behind Carnival and Royal Caribbean, dived to a loss in the first half despite a 21 per cent revenue growth, as income was eroded by soaring fuel costs and accounting losses related to its debt and investment.
Hong Kong-listed Star Cruises' net loss for the first six months was US$68.9 million, compared to a US$10.6 million profit a year ago on the back of high oil prices and intense pricing pressure on crowded Caribbean routes.
While best known locally for its casino cruises in the waters of the South China Sea, Star Cruises, a unit of Malaysia's Genting group, relies on the massive North American leisure market for more than 70 per cent of its revenue.
But cut-throat competition and higher staffing costs in overseas markets - together with a more than 50 per cent spike in global fuel prices since last year - have made for rough sailing.
The company said average fuel prices went up 42 per cent in the first half year on year and fuel costs accounted for 19.4 per cent of ship operating expenses, up from 15.1 per cent.
