million, a rise of 13.6 percent on the three months to June 30 in 1996.

The line, whose Song of America is a regular weekly caller to Bermuda, said operating income rose to $76.4 million, up 14.4 percent from 1996.

"The gains we achieved during the first quarter of 1997 continued for the second quarter as well, resulting in an excellent first half result,'' said Richard D. Fain, chairman and chief executive officer of Royal Caribbean.

"We expanded our fleet by with the delivery of the Rhapsody of the Seas in April and, followed by Enchantment of the Seas in July. These new vessels, plus our pending merger with Celebrity Cruise Lines, give me greater enthusiasm for Royal Caribbean's future performance.'' RCCL announced during the quarter that it was buying Celebrity, whose Zenith and Meridian are weekly callers to the Island.

SMOKE-FREE CRUISES SHI Smoke-free cruises Carnival Cruise Lines will ban smoking on one of its cruise ships and will start offering smoke-free cruises next autumn.

Carnival said on Monday that the smoking ban on the $300 million MS Paradise represents a step up from the cruise line's current smoking policy which prohibits smoking in dining rooms and main show lounges.

The move -- which will even include a ban on smoking on deck -- came as a result of demand by guests, Carnival said.

Refugees picked up