Cruise company Carnival today admitted it had underestimated the impact the conflict in the Middle East, the tsunami in Japan and the increase in fuel prices on its earnings for the second half of the year.
Its share price fell 38p to £22.61 following its announcement that the Arab spring combined with the tsunami had cost it $0.15 per share. The troubles had caused the company to reschedule more than 300 cruises.
In addition, the cruise operator said it had experienced 'softness' in bookings for the UK and southern Europe markets, which will result in reduced revenues costing an additional $0.05 per share for the second half of 2011.
However, the company expects to offset the effect of this $0.05 per share in other cost areas of the business. Revenue performance for the North American brands remains strong, it said.
The company will announce second quarter results and more details of its 2011 full year guidance on June 21.
By Linsey McNeill
