Carnival Corp. records $222 million in net income in Q2

Carnival Corp. reported $222 million in net income in the second quarter, up more than 126% from second quarter 2014. Revenue for the quarter, the company said, was $3.6 billion, compared with $3.63 billion in 2014.

Carnival said its net income in the quarter included unrealized gains on fuel derivatives of $34 million and $7 million on restructuring expenses.

Net revenue yields rose 4.1% in the quarter on a constant-dollar basis, beating the company’s estimate of increases in the 2% to 3% range; gross revenue yield decreased 3.5% due to changes in currency exchange rates, it said.

Fuel prices declined 37%, to $411 per metric ton; the company spent $333 million on fuel in the quarter, compared with $527 million in Q2 2014. Net cruise costs, excluding fuel, increased 6.1%, which the company primarily attributed to an increase in drydock days.

Carnival Corp. CEO Arnold Donald said in the earnings statement that all company’s North American brands “enjoyed strong revenue yield improvement”; he singled out the Carnival Cruise Line brand and said it “performed particularly well again this quarter.”

The company said that fleetwide booking volume for the next three quarters was running “well ahead” of last year, at slightly lower prices due to transactional currency impacts. Donald said that the strong booking volume “clearly demonstrates strong consumer demand for our brands,” and he added that Carnival Corp. would step up marketing investment for the remainder of the year.

Carnival said its third-quarter net revenue yields were expected to be up 2% to 3% in constant dollars compared with Q3 2014.

This report was updated to clarify a statement from Arnold Donald regarding yield improvement in the company’s cruise brands.

Carnival Breeze’s Galveston deployment moved up

Carnival Breeze

Carnival Cruise Line will reposition the Carnival Breeze to Galveston next May, seven months earlier than originally planned.

The 3,690-passenger ship will sail seven-day cruises from the Texas port, with the first departing on May 8, 2016.

The Breeze will replace the 3,690-passenger Carnival Magic, which will shift to Port Canaveral, Fla., and assume the Carnival Valor’s seven-day cruise schedule, beginning April 23, 2016.

The 2,980-passenger Valor will offer a new series of five- and eight-day cruises from Port Canaveral, beginning June 4, 2016.

The Breeze’s current six- and eight-day Caribbean cruise program from Miami will be taken over by the 3,002-passenger Carnival Splendor on May 1, 2016.

Reservations are open for the new itineraries.

Allure of the Seas refurbished in drydock

Allure of the Seas in dry dock

Royal Caribbean’s Allure of the Seas, the world’s largest cruise ship, received new restaurants, suites and public spaces in its first major drydock since its debut in 2010.

New restaurants include Izumi Hibachi & Sushi, a “re-imagined” version of Royal Caribbean’s Izumi Japanese restaurant, and Sabor Taqueria & Tequila, its modern Mexican concept.

Also new is Coastal Kitchen, the restaurant reserved for suite guests on Royal Caribbean’s newer ships.

Royal Caribbean said it has added 10 new suites to Allure, with views of the aft Aqua Theater and Boardwalk neighborhood. They include two new Royal suites, six Grand suites and two Royal Family suites. Guests will have access to a new Suite Lounge and a new sun deck area both exclusive to suite passengers.

Allure also got new shops including Kate Spade New York and Michael Kors.

The ship will sail in Europe from Barcelona through November, when it will return to Fort Lauderdale.