Carnival shares plunge following profits warning

Shares in the world’s biggest cruise company Carnival fell by 13 per cent following an overnight profit warning.

Taking into account current fuel prices and currency exchange rates, Carnival said full-year earnings per share would be between $1.45 and $1.65, compared with a previous range guide of $1.80 to $2.10.

The company said it was selling more packages but heavy discounting meant the net revenue it had earned from each berth had fallen for the second time in three months.

Carnival has suffered several high-profile problems this year, following the sinking of its ship the Costa Concordia last year, with the loss of 32 lives.

It was forced to cancel a Caribbean cruise on the Carnival Dream in March due to a broken generator, and an engine room fire on Carnival Triumph in February left more than 3,000 passengers stranded at sea for four days.

Analysts told the FT the company’s problems had hit consumer confidence, forcing the company into deep discounting.