Tag Archives: profits

Disney surges on new cruise ship, higher park attendance

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Disney surges on new cruise ship, higher park attendance

By Michelle Baran
Operating income and revenue at Walt Disney Co.’s Parks and Resorts division continued to grow in the company’s fiscal second quarter, due in large part to the Disney Fantasy cruise ship and increased spending at the domestic parks.

Operating income for Parks and Resorts increased 73% to $383 million, and revenue grew 14% to $3.3 billion, Disney reported.

Disney said that higher operating income for domestic operations was primarily due to increased guest spending and attendance at the Walt Disney World Resort in Florida and the Disneyland Resort in California, as well as the Disney Fantasy cruise ship, which launched in March 2012.

During the second-quarter earnings call on Tuesday, Disney executives continued to tout investments recently made in the domestic parks, most notably the multibillion-dollar overhaul of Disney California Adventure at the Disneyland Resort, as driving returns.

Additionally, the company reported higher guest spending at Disneyland Paris and increased attendance at Hong Kong Disneyland.

For the entire company, net income for the quarter increased 32% to $1.5 billion. Revenue grew 10% to $10.55 billion.

Branson pins profit hopes on Dreamliner

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Branson pins profit hopes on Dreamliner

By Robin Searle

Branson pins profit hopes on DreamlinerDelivery of Boeing’s troubled 787 aircraft will be crucial to Virgin Atlantic’s aim of returning to profitability by 2015, according to the airline’s president Sir Richard Branson.

Speaking to Travel Weekly during the inaugural celebrations for Virgin’s domestic offshoot Little Red in Edinburgh, Branson said he felt the target was viable and dependent on the integration of more cost-effective aircraft.

“As long as the 787s don’t get delayed again, there is every chance that it can be possible,” he said.

Virgin is due to take delivery of Boeing’s 787 Dreamliner in late summer 2014 as part of a wider fleet overhaul. It also hopes to boost revenue with the launch of Little Red services from Heathrow to Edinburgh, Aberdeen and Manchester and through an expected tie-up with Delta Air Lines in the US.

Virgin’s new chief executive Craig Kreeger believes the airline can transform a loss, expected to be about £130 million for the financial year to February 2013, into a profit within two years.

“(To return to profit) our strategy includes trying to find new sources of revenue, and that includes creating connectivity through Little Red and through the relationship with Delta,” said Kreeger.

“We have made some tough decisions, including a pay freeze for staff, but we have to ensure that no decisions are made at the expense of the customer or our people.”

The two airlines filed an application with the US Department of Transportation seeking antitrust immunity for their joint venture this week.

Speaking about the appointment of former American Airlines executive Kreeger, Branson said: “Craig has a lot of experience in the States, and through the Delta deal the States is going to play a bigger and bigger role in Virgin Atlantic’s future.”

Norwegian reports improved profits despite ‘unexpected challenges’

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Norwegian reports improved profits despite ‘unexpected challenges’

By Phil Davies

Norwegian reports improved profits despite 'unexpected challenges'Norwegian Cruise Line has delivered improved profits for 2012 of $169 million against $127 million the previous year despite the year’s “unexpected challenges”.

The result for a period when the cruise industry had to deal with the impact of the Costa Concordia disaster was announced after the company’s recent move to become a public company.

Full year revenue was up by 2.6% to $2.27 billion with an improvement in yields put down to increased fares and onboard revenue.

Norwegian posted a fourth quarter net profit of $5.6 million against a loss of $1.9 million in the same period in 2011, despite a rise in fuel costs.

Looking forward, the company expects a further improvement in net yields of between 3.5% and 5.5%.

The line takes delivery of Norwegian Breakaway, the first of two new ships, in April, along with a Breakaway Plus vessel due to enter service for in autumn 2015.

President and chief executive Kevin Sheehan said: “While 2012 included some unexpected challenges in the macro environment, our results demonstrate our ability to manage our operations through these external factors and report healthy growth.

“We are very pleased to begin our journey as a public company by posting strong results for 2012.

“In addition, our fourth quarter results marked our 18th consecutive quarter of year-over-year adjusted EBITDA growth.

“2013 marks the beginning of the next chapter of Norwegian’s growth story,” he added.

“The delivery of our Breakaway and Breakaway Plus class vessels, designed to improve on the already successful platform of Norwegian Epic, along with our strong product proposition that offers a consistent experience throughout our fleet, has Norwegian well positioned for 2013 and beyond.”