Fuel cost rises take shine off Carnival first quarter
Monday, 24 Mar, 2010
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Carnival Corporation has reported a “robust” wave peak season booking period but rising fuel prices took the shine off first quarter results.
Bookings are running ahead of last year with prices “significantly higher” than 2009’s discounted levels.
Cumulative advance bookings for the remainder of 2010 are in line with last year at higher prices.
Chairman and CEO Micky Arison said: “We have enjoyed a very robust wave season, setting booking records during the quarter.
“Wave season bookings were fuelled by attractive pricing in the marketplace and pent-up demand from those who postponed vacations last year.
“As a result, pricing continues to increase, particularly for the peak summer season.
“Having achieved significantly higher pricing, we expect revenue yields for the remaining three quarters of the year to increase approximately three to four per cent (in constant dollars) compared to last year.
“Vacationers should take advantage of the current low rates now as prices are going up.”
He was speaking as the parent company of brands such as P&O Cruises, Cunard, and
Princess Cruises reported a net profit of $175 million on revenues of $3.1 billion for its first quarter ended February 28, down from $260 million on revenues of $2.9 billion the same period a year earlier.
The company was hit by rising fuel prices in the three months. The price increased 80% to $497 per metric ton for the quarter from $276 per metric ton in the same period the previous year and was higher than the December guidance of $474 per metric ton.
The first quarter included a $0.05 gain ($44 million) from the sale of P&O Cruises’ Artemis, as previously announced.
Arison said: “We were very encouraged by our results as pricing continued to rebound off last year’s lows and we returned to top line revenue growth after a challenging 2009.
“During the quarter, the booking environment continued to improve for our North American brands and we achieved stronger than expected pricing on close in bookings.
“In addition, we continue to realise significant cost savings worldwide, though the strength of our performance was masked by rising fuel prices.”
The company introduced two new ships, AIDAblu and Costa Deliziosa, for its growing European brands during the quarter and signed a memorandum of agreement with Italian shipbuilder Fincantieri for the construction of two 3,600-passenger ships for Princess Cruises.
The 139,000-ton ships will be the largest in the Princess fleet to enter service in 2013 and 2014.
Two new ships will debut in Europe in Carnivals’ second quarter – P&O Cruises’ 3,100-passenger Azura, and The Yachts of Seabourn’s 450-passenger Seabourn Sojourn.
by Phil Davies
Phil Davies
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