NEW YORK (Bloomberg) — Royal Caribbean Cruises Ltd., the world's second-largest cruise operator, said fourth-quarter profit plunged 98 percent because of a demand slump and projected 2009 earnings below analysts' estimates.

Net income dropped to $1.48 million, or one cent a share, the Miami-based company said yesterday in a statement. Twenty-three analysts surveyed by Bloomberg estimated profit of almost seven cents. Royal Caribbean projected earnings of $1.40 a share for this year, trailing the $1.77 average estimate of 29 analysts.

"The revenue outlook for 2009 remains weak. Both ticket sales and onboard revenue have been impacted by the general economic conditions," the company said in the statement. "It has required substantial discounts to generate the requisite volume and consumers are making their vacation decisions later than previously."

Revenue after operating costs per available passenger cruise days, a measure known as net yield, fell 5.9 percent, more than the company projected for the quarter, as bookings showed a "substantial" decline in September. Royal Caribbean projected a net yield drop of at least nine percent this year.

Both Royal Caribbean and bigger rival Carnival Corp. are trying to woo cash-strapped travellers by marketing cruising as an all-inclusive vacation that usually costs 30 percent less than comparable land and hotel trips.

Full-year 2008 net income of $2.68 a share missed the $2.73 to $2.78 range the company forecast in October and the $2.71 estimated by 29 analysts surveyed by Bloomberg.