quarter of this year, after selling the Nordic Prince to Airtours.

Lloyd's List last Friday reported that profits over the three-month period would have been $3.2 million lower, at $32.2 million, if the sale had not taken place.

But the company estimated that the net effect of changing its financial year to a calendar year on first quarter revenues was $4.5 million. Its financial year used to run from February 1 to January 31.

And the company predicts that second-quarter earnings will be hit by a combination of lower capacity and reduced bookings -- evident since last year -- until the introduction of its latest new ship Legend of the Seas . She was due to be delivered in France at the end of last month and is scheduled to enter fare-paying service next month.

Royal Caribbean said since the passenger downturn last year, it has launched marketing and yield management programmes designed to expand the market and attract prospective cruisers.

Chairman and chief executive Mr. Richard Fain was reported as saying arrival of the Legend of the Seas would raise profits.

She is the first of a series of six Project Vision vessels being built in France and Finland.

They will add a total of 11,500 berths to the fleet up to 1998.