Fuel costs dampen Carnival Corporation profits rise
Carnival Corporation, the world’s largest cruise group, saw only a marginal rise in profits this year as high fuel costs impacted the company.
Net profit for the year to November 30 came in at $2.28 billion, up from $2.25 billion the previous 12 months.
Higher fuel prices increased operating costs by $210 million in 2006.
Chairman and CEO Micky Arison said: “Following two exceptionally strong years of earnings growth in 2004 and 2005, we ended 2006 with a modest increase in earnings per share as a result of a very significant incrase in fuel prices.”
However, the group’s European brands achieved record yields and profits in the period to counterbalance a drop in pricing on Caribbean cruises due to hurricane fears and what Arison described as a “challenging economic environment” in North America.
Collectively, the group will see an 8.4% capacity rise in 2007 with new ships for Carnival Cruise Lines, Princess Cruises, AIDA and Costa.
Forward bookings for European brands continue to be strong while pricing in the Caribbean is still under pressure, Arison said.
He added that the strength of the upcoming new year ‘Wave’ peak booking period would have a “significant effect” on 2007 reveue yeilds.
Carnival UK earlier announced a £10 million promotional push to attract early 2007 bookings (see previous TravelMole story).
Report by Phil Davies
Phil Davies
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