Tag Archives: hurricane Dorian

Carnival’s Q3 profit rises, but storm clouds are on the horizon

Posted on by
Reply

Carnival Corp. reported higher third quarter-net income, but reduced its outlook for the 2019 fiscal year and said that business in Europe and the U.S. had eroded since it last reported results three months ago.

Reacting to the mix of news, investors pushed Carnival shares down 7% in mid-morning trading on Thursday.

Carnival said net income for the quarter ended Aug. 31 was $1.78 billion, up from $1.71 billion a year earlier, while revenue rose to $6.53 billion from $5.84 billion.

Carnival also reported higher earnings adjusted for nonrecurring factors, but forecast that earnings for the full year would fall in the range of $4.23 to $4.27 a share, compared to a previous range of $4.25 to $4.35 put forth in June and actual results of $4.26 a share in 2018.

Carnival blamed higher anticipated fuel prices for the reduction.

“We achieved additional cost improvements largely driven by leveraging our scale, offsetting the earnings impact due to voyage disruptions from the combined impact of Hurricane Dorian, the tensions in the Arabian Gulf and the delayed delivery of Costa Smeralda,” Carnival CEO Arnold Donald said in a statement.

“A further reduction in guidance for ticket and onboard revenue worth 6 cents per share in part contributed to by the high level of close-in voyage disruptions was also offset. However, due to an 8 cent a share impact from the recent spike in fuel prices caused by geopolitical events, we are reducing our full-year guidance for 2019 by 5 cents a share,” Donald said.

Carnival said it expects it’s North America and Australia segment yields to be up for the year, but slightly less than previous guidance while its Europe and Asia segment is still expected to be down for the year but slightly more than previous guidance.

It also said: “Cumulative advanced bookings for the first half of 2020 are ahead of the prior year at prices that are in line compared to 2019 on a comparable basis. Since June, both booking volumes and prices for the first half of next year have been running lower than the prior year.”

By mid-afternoon Thursday, Carnival shares were trading at $44.14, off 8.2% from Wednesday’s close.

When Dorian threatened, Royal Caribbean had a balloon to deal with

Posted on by
Reply

AUSTIN, Texas — Royal Caribbean had a myriad of decisions to make before, during and after Hurricane Dorian hit the Bahamas. 

And while it’s Up, Up and Away helium balloon at private island CocoCay was not at the top of the list, it was still something the company had to address. To deflate or not to deflate?

Royal Caribbean chairman Richard Fain talked about the balloon, and Royal’s other efforts surrounding Dorian, during a press breakfast last week at Signature Travel Network’s Owners’ Meeting at the Fairmont Hotel Austin.

At first glance, it seems like an easy decision to deflate the balloon and not risk hurricane damage. Giant custom helium balloons aren’t exactly for sale on Amazon.

However, deflating the balloon wasn’t a cheap option. The balloon takes over a week to inflate, and with a worldwide helium shortage, filling Up Up and Away costs around $350,000.

The company took the more conservative route and deflated it.

After the storm, a team of about 300 people were flown to a nearby island, then took boats to get to CocoCay. They worked to restore the island, and it has since reopened.

Fain confirmed that the Up Up and Away balloon is being reinflated.

Carnival brands resume Bahamas calls

Posted on by
Reply
Image result for Crown Princess

Carnival Corp. said that its brands have resumed regular sailings to the Bahamas for the first time since Hurricane Dorian struck on Sept. 1.

The company’s private islands, Princess Cays and Half Moon Cay, have resumed taking ship calls and Carnival’s three largest North American brands — Carnival Cruise Line, Princess Cruises and Holland America Line — together are projected to make over 250 sailings to the Bahamas through the end of 2019.

Carnival Cruise Line alone will make an estimated 204 calls through the remainder of the year, visiting Nassau, Half Moon Cay and Princess Cays on eight of its ships.

Princess will return to with the Crown Princess’ arrival on October 9, and Holland America resumes Bahamas calls beginning Oct. 21, when the Zuiderdam arrives at Half Moon Cay.

Two Carnival ships — Carnival Liberty and Carnival Pride — have made stops this week in Freeport to deliver relief supplies to assist residents, including dozens of pallets of water, generators, chain saws, prepared meals and medical supplies. 

Carnival Corp. chief communications officer Roger Frizzell said, “It is important to spread the word that much of the country had no or little impact and is open for business.”