Carnival profits plunge

Costa Concordia’s US parent Carnival Corporation saw its income for the year fall by $400m to $1.9bn following a 55% plunge in earnings in the fourth quarter to $98m.

Nevertheless, the company announced today it would donate $2 million to charities supporting victims of Hurricane Sandy, which caused widespread devastation across the east coast of America, including New York.

Chairman and CEO Micky Arison said the fourth quarter earnings were better than anticipated in the company’s September guidance, but he added: "As a result of the Costa Concordia tragedy in January, the past year has been the most challenging in our company’s history."

He said full year net revenue yields (excluding Costa) were in line with the previous year, and the company had driven down costs slightly and reduced fuel consumption (though not fuel costs) by 4%.

Unfavourable changes in fuel prices and currency exchange rates reduced earnings by $300m compared to 2011.

Since September, booking volumes for the first three quarters, including Costa, are running in line with volumes experienced last year, but at slightly lower prices, said the company.

"At this time, cumulative advance bookings for 2013 continue to be behind the prior year at slightly lower prices.

"Based on current booking trends, the company forecasts full year 2013 net revenue yields, on aconstant dollar basis, to be up 1% to 2%."

However, revenue yields are expected to decline 2% to 3% in the first quarter and improve sequentially during the remainder of 2013 based on a recovery in ticket prices and occupancy for the North American brands and Costa. However, the company’s European brands continue to be negatively impacted by a deteriorating economic environment, it said.

 "We remain well positioned for a recovery in 2013 and beyond evidenced by the demonstrated resilience of our global portfolio of cruise brands as consumers continueto capitalise on cruising’s superior value versus land-based vacation alternatives," said Arison.

"We continue to focus on a measured growth strategy through the introduction of two to three new ships per year and the development of emerging cruise markets in Asia."

During 2013, the company expects to carry over 10 million passengers on its global fleet and will introduce two new ships, the 2,192-passenger AIDAstella which is scheduled for delivery in March and the 3,560-passenger Royal Princess, which is scheduled for delivery in May.