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Carnival Corporation & plc full year profit finally exceed 2007 record

  • Written by Kari Reinikainen

Carnival Corporation & plc, the world’s largest cruise shipping group, has reported a 58% rise in net profit in its latest financial year and the fresh figure finally beat a record set in 2008.

Group net profit in the financial year to 30 November rose to $2.78 billion from $1.76 billion in the same period a year earlier, while revenues rose to $16.39 billion from $15.71 billion.

In the final quarter of the financial year, the profit reached $609 million compared to $270 million a year earlier. Revenues increased to $3.94 billion from $3.71 billion.

Carnival Corporation & plc President and Chief Executive Officer Arnold Donald noted in a statement: "We achieved the most profitable year in our company's history as well as record fourth quarter earnings. The continued execution of our core strategy to drive consumer demand in excess of measured capacity growth, contain costs and leverage our industry-leading scale resulted in our third consecutive year of significantly higher earnings and return on invested capital.”

The profit for the latest financial year exceeded a record of $2.42 billion set way back in 2007. However, at that time, the company only carried 8.14 million passengers compared to 11.53 million in the latest financial year, indicating that margins remain bellow of those before the crisis.

Gross revenue yields (revenue per available lower berth day or "ALBD") increased 1.6%. In constant currency, net revenue yields increased 4..1% for 4Q 2016, better than September guidance of up approximately 3%.

Gross cruise costs including fuel per ALBD increased 0.2%. In constant currency, net cruise costs excluding fuel per ALBD increased 1.0%, in line with September guidance of up approximately 1%. Changes in fuel prices (including realized fuel derivative losses) and currency exchange rates decreased earnings by $0.04 per share versus the prior year.


P&O Cruises Australia to lose newbuilding to Carnival Cruise Line

  • Written by Kari Reinikainen

P&O Cruises Australia, the Australia and New Zealand focused contemporary market unit of Carnival Corporation & plc, will lose a 133,500 gross ton newbuilding on order to sister company Carnival Cruise Line, the company said in a statement.

Instead, Carnival Splendor will be transferred to the Australian company in the spring of 2019.

“A new 133,500-ton cruise ship, which will be the third vessel in the company’s Vista class series, will join the Carnival Cruise Line fleet in late 2019,” Carnival Cruise Line said.

The vessel will be the third Vista class ship in the Carnival Cruise Line fleet. Carnival Splendor, which was built in Italy in 2007, has a gross tonnage of about 113,300.

Pullmantur to axe Croisieres de France brand - report

  • Written by Kari Reinikainen

Pullmantur, the Spanish tout and cruise operator in which Royal Caribbean Cruises, Ltd (RCCL) has a minority stake, has decided to close its Croisieres de France (CDF) brand that focuses on the French market, Mer et Marine ( reports on its website.

The Spanish company that owns the brand has decided to focus its cruise business that employs four vessels that are owned by the RCCL group on its biggest and most profitable markets, which are Spain and Latin America.

CDF has an office in Paris and according to its website, it operates two ships, Zenith and Horizon, both build in the early 1990s for Celebrity Cruises. The Paris office would close in February, the report said.

TUI group’s Germany based brands deliver strong performance

  • Written by Kari Reinikainen

The two Germany based cruise brands of TUI AG, the world’s largest travel company, have reported strong performance for the latest financial year, helped by turnaround of Hapag-Lloyd Kreuzfahrten

Hapag-Lloyd Kreuzfahrten, the luxury and expedition cruise unit that it 100% owned by TUI AG, increased its turnover ny 8.6% to €296.7 million. Average daily rate increased to €579 per person and occupancy rate increased by a fraction, to 76.8% rom 76.2%/

The premium market focused TUI Cruises, of which TUI AG owns half and Royal Caribbean Cruises Ltd (RCCL) the other half, recorded an improvement in daily rate to €171 from €169, while occupancy ratio dropped by 0.1 percentage points to 102.6%.

The group’s cruising activities generated a return on invested capital of 21.3%, which was four percentage points more than in the previous financial year. In the 2014-15 financial year, the figure was just 3.3% due to problems at Hapag-Lloyd Kreuzfahrten, which have since been dealt with.

Thomson Cruises in the UK, which is fully owned by the group, is not included in these figures, as it is part of the Northern Region business segment of the group.



RCCL receives permission from Cuba to start cruises to country

  • Written by Kari Reinikainen

Royal Caribbean Cruises Ltd. (RCCL), the second largest cruise shipping group in the world, said that the Cuban government has granted approval for the company to begin cruises to Cuba. The company said it plans to announce its first Florida-Cuba itineraries in the near future.

“Our guests have expressed real interest in having the opportunity to experience Cuba, and we look forward to bringing them there," said Richard D. Fain, chairman and chief executive officer of Royal Caribbean Cruises Ltd.

"Our discussions with our travel partners indicate that Cuba is a destination that appeals to a new generation of travelers.”

Two RCCL brands, Royal Caribbean International and Azamara Club Cruises, will provide guests with travel directly to Cuba for the purpose of providing people-to-people exchanges between guests and Cuban citizens and other travel permitted by current U.S. regulations 

The cruise itineraries will comply with U.S. Department of Treasury rules that permit travel companies to transport approved travelers to Cuba to engage in people-to-people activities as defined by the U.S. Department of Commerce, Office of Foreign Assets Control (OFAC).



CBR 1/2016 contents