Carnival to raise European capacity by 22%
Carnival Corporation is to raise capacity in Europe by 22% next year on the back of record 2007 profits of $2.4 billion.
The US cruise giant’s annual net profits were up from $2.3 billion in 2006 as earnings in the fourth quarter ending November 30 were held back by increased fuel costs and higher dry dock outlay.
Net profits for the final three months of the company’s financial year dropped by almost 14% or $58 million to $358 million, blamed on “significantly higher” costs of fuel.
Chairman and CEO Mickey Arison said the group’s European brands – which incorporate the Carnival UK business of P&O Cruises, Cunard Line and Ocean Village – enjoyed another record year “absorbing substantial new capacity and driving significant improvement in unit operating profit”.
Overall capacity will grow by nine per cent in 2008, mainly driven by the introduction of five new ships across five brands.
Advance bookings for the first half of next year are “well ahead” with those for the second half “shaping up in a similar fashion”.
“While our North American brands will grow capacity at a moderate rate of three per cent, our European brands will increase capacity by 22% next year, including the full year operation of our new Spanish cruise line, Ibero Cruises,” said Arison.
“As we grow our European brands, we will be able to achieve economies of scale which will have a favourable impact on our unit costs and profitability.”
Fuel expenses are expected to rise by $409 million in 2008.
by Phil Davies
Phil Davies
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Qatar Airways offers flexible payment options for European travellers
Airlines suspend Madagascar services following unrest and army revolt
Digital Travel Reporter of the Mirror totally seduced by HotelPlanner AI Travel Agent
Strike action set to cause travel chaos at Brussels airports
All eyes on Qatar as Qatar Airways leads a season of global events