European cruises help Carnival raise revenues in ‘difficult environment’
Carnival Corporation shrugged off high oil prices and weak demand for Caribbean cruises to increase third quarter revenues by 8.3%.
The US-based cruise giant achieved net profits of $1.23 billion for the three months ending August 31, against $1.18 billion in the same peak summer period last year.
Revenues were up to $3.91 billion for the period against $3.61 billion for the same quarter in 2005.
The rise in revenues was attributed to a 5.2% increase in capacity and improved yields.
The company admitted advance booking levels for the final quarter were behind this time last year although averaging pricing was above 2005 levels.
Overall booking levels for the first quarter of 2007 were described as being “marginally down” on a capacity adjusted basis.
“The sluggish demand for the Caribbean is continuing into the first quarter of 2007 causing North American booking levels to be behind last year, while business for the company’s European brands for that period is running ahead of last year’s pace,” Carnival said.
Reviewing the third quarter for the group – which includes UK brands P&O Cruises, Cunard and Ocean Village in addition to lines such as Carnival Cruise Lines, Princess Cruises and Costa – chairman and CEO Micky Arison said: “Despite rising fuel costs and softness in Caribbean business, we still managed to grow earnings by over six per cent in a difficult environment.
“The successful introduction of three new ships along with strong European and Alaska seasons helped us overcome $55 million in higher fuel costs and weakness in Caribbean demand.
“Both our European and North American brands have enjoyed a very strong summer in Europe and the North American brands operating in Alaska also performed very well during the quarter.”
Report by Phil Davies
Phil Davies
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