Tag Archives: Carnival Spirit

Carnival Corporation’s fourth quarter profits fall by 55%

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Carnival Corporation’s fourth quarter profits fall by 55%

By Melanie Hall

Carnival Corporation’s profits fell by 23% in 2012, with a 55% drop in the fourth quarter, following its “most challenging” year after the Costa Concordia tragedy in January.

The company revealed its full year and fourth quarter earnings today, which showed that its net profits in the 12 months to November 30 were $1.47 billion, down from $1.9 billion at the same time last year.

Its fourth quarter profits are down from $217 million in 2011 to $98 million in 2012, a drop of 55%, although Carnival Corporation’s chairman and chief executive Micky Arison said that the quarter’s earnings “were better than anticipated”.

Commenting on the full year’s earnings, Arison said: “As a result of the Costa Concordia tragedy in January, the past year has been the most challenging in our company’s history.

“However, through the significant efforts of our brand management teams, we were able to maintain full year 2012 net revenue yields – excluding Costa – in line with the prior year.”

Arison added that unfavourable changes in fuel prices and currency exchange rates reduced earnings by $300 million compared to the prior year.

During the fourth quarter, Carnival reached an agreement on the construction of two new cruise ships – a 2,660-passenger ship for its Holland America Line brand to be delivered in 2015 and a 4,000-passenger vessel for its Carnival Cruise Lines brand to be delivered in 2016. Both are the largest ships ever built for those brands.

Carnival has forecast a decline of 2-3% in its revenue yields in the first quarter of 2013 but has predicted it will improve during the remainder of next year for the North American brands and Costa, although it said its European brands continue to be hit by a “deteriorating economic environment”.

“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 continue to capitalize 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.”

Carnival tightens cancellation policy

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Carnival tightens cancellation policy

By Donna Tunney
Carnival Cruise Lines modified its cancellation penalties for voyages of at least six days, excluding Europe cruises.

Passengers who cancel their cruise 75 to 56 days prior to departure are now charged a cancellation fee equaling the minimum deposit on the voyage.

Passengers who cancel their cruise 55 to 30 days prior to departure are charged 50% of the cruise fare.

Previously, the date ranges were from 75 to 46 days prior to departure for forfeiture of the deposit and 45 to 30 days prior to departure for forfeiture of 50% of the cruise fare.

The change places Carnival in line with cancellation policies of other cruise lines, Carnival said. The new policy is effective with new bookings made on or after Jan. 30, 2012.

Carnival chief Arison orders ‘comprehensive review’

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Carnival chief Arison orders ‘comprehensive review’

Carnival chief Arison orders 'comprehensive review'

Costa Cruises’ parent Carnival Corporation is to undertake a “comprehensive review” of all safety and emergency response procedures across its nine cruise lines which run 101 ships worldwide.

Carnival also gave its backing to a call for thorough evaluation of safety regulations by the International Maritime Organisation, requested yesterday by the Cruise Lines International Association.

The moves came as Costa confirmed that survivors of the Costa Concordia will receive a refund for the abandoned cruise after the ship run onto rocks off the west of Italy and “all material expenses relating to it”.

The Italian company added that it was in contact with passengers and consumer protection associations “to determine indemnity for the hardship endured, with the support of the tour operator association of each country”.

This came as a video emerged showing the crew of Costa Concordia reassuring passengers nothing was wrong, after the ship had begun taking in water.

In the amateur footage, a crew member says “everything is under control” and a generator problem will be fixed. She asks passengers to go to their cabins.

The vessel ran aground off Italy’s coast with 4,200 people on board and listed on its side. At least 11 people died and 21 are still missing.

Italian media broadcast what is claimed to be the first phone conversation between port officials and crew of the vessel about 30 minutes after the ship hit rocks. In the exchange, a crew member is heard saying it is experiencing only a blackout, the BBC reported.

Carnival chairman and CEO Micky Arison admitted the Costa Concordia tragedy “has called into question our company’s safety and emergency response procedures and practices”.

He added: “While I have every confidence in the safety of our vessels and the professionalism of our crews, this review will evaluate all practices and procedures to make sure that this kind of accident doesn’t happen again.”

The action by the company, which includes UK-based P&O Cruises and Cunard Line together with the likes of Princess Cruises, Carnival Cruise Lines, Holland America Line and Seabourn, will be led by retired US navy captain James Hunn, the organisation’s senior vice president of maritime policy and compliance.

Hunn and senior health and safety executives from each of the lines will review all safety and emergency response policies and procedures, officer and crew training and evaluation, bridge management and company-wide response and support efforts. He will report to the Carnival’s health, environment, safety & security committee and to chief operations officer Howard Frank.

Carnival also announced that the committee is engaging outside “industry-leading experts” in the fields of emergency response organisation, training and implementation to conduct an audit of all of the company’s emergency response and safety procedures and to conduct a thorough review of the Costa Concordia accident.

Frank said: “This company-wide initiative will identify lessons learned and best practices to further ensure the security and safety of all of our passengers and crew.”