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Booked volumes, prices for 2020 turned lower in June, Carnival says

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 26 September 2019 26 September 2019

Carnival Corporation & plc, the world’s largest cruise shipping cpmpany, said booked volumes and prices for 2020 turned lower versus year on in June, while new regulations will increase its fuel bill by $200 million next year

The group’s 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,” the company pointed out, the company said.

For full year 2020, the company expects capacity growth of approximately 7%. As previously indicated, in 2020 the company will increase its usage of Marine Gas Oil (MGO) as a percent of total fuel consumption as a result of the IMO sulfur emission regulations.

MGO is currently anticipated to represent approximately 40 %of fuel consumption for full year 2020 compared to approximately 20 %for full year 2019. Using fourth quarter September guidance fuel prices, fuel expense for full year 2020 is expected to be $1.8 billion compared to $1.6 billion expected for full year 2019.

The company currently expects depreciation to be approximately $2.4 billion for full year 2020 compared to $2.2 billion for full year 2019.

Carnival issues profit warning on oil price, weather and geopolitics

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 26 September 2019 26 September 2019

Carnival Corporation & plc, the Anglo-American cruise shipping group, has issued a profit warning, citing several different factors as causes of the weakening outlook

The company now expects full financial year year 2019 adjusted earnings per share to be in the range of $4.23 to $4.27, reflecting recent fuel price increases, compared to June guidance of $4.25 to $4.35 and 2018 adjusted earnings per share of $4.26.

Weather related voyage disruptions, the tensions in the Arabian Gulf and a ship delivery delay are expected to have a financial impact of $0.04 to $0.06 per share compared to June guidance. Changes in fuel prices and currency exchange rates are expected to decrease earnings by $0.08 per share also compared to June guidance.

A further reduction in guidance for ticket and onboard revenue worth $0.06 per share in part contributed to by the high level of close-in voyage disruptions was also offset.

“However, due to an $0.08 impact from the recent spike in fuel prices caused by geopolitical events, we are reducing our full year guidance for 2019 by $0.05 per share," Carnival said in a statement.

Based on current booking trends, the company expects full year 2019 constant currency net cruise revenues to be up approximately 4.0%, with capacity growth of 4.2%

“The company continues to expect its North America & Australia segment yields to be up for the year, but slightly less than previous guidance while its Europe & Asia segment is still expected to be down for the year but slightly more than previous guidance,” it said.

 

The company expects full year net cruise costs excluding fuel per ALBD in constant currency to be up approximately 0.3 %versus the prior year compared to June guidance of up approximately 0.7%.

Carnival Corporation & plc reports record third quarter in challenging year

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 26 September 2019 26 September 2019

Carnival Corporation & plc, the world’s largest cruis shipping group, reported record earnings for its third quarter, but also stated that this is a challenging year.

Group net income rose to $1,.78 billion in threemonths to 31 August from $1.71 billion in the same period last year, while operating income increased to $.189 billion from $1.79 billion. Revenues rose to $6.33 billion from $5.84 billion.

In the  first nine months of its financial year, the groip rccorded a net profit of $2.57 billion compared to $2.66 billion year on, with operating income edging higher to $2.79 billion from $2.77 billion. Revenues increased to $16.04 billion from $1.43 billion.

President and Chief Executive Officer Arnold Donald said in a statement: "I thank our 150,000 global employees for their efforts to deliver a record quarter in an otherwise challenging year. 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.”

Gross revenue yields -revenue per available lower berth day or "ALBD" -  increased 5.6%. In constant currency, net revenue yields decreased 0.5%, in line with June guidance of down slightly to flat.

Gross cruise costs including fuel per ALBD increased 9.4%. In constant currency, net cruise costs excluding fuel per ALBD decreased 3.2%, better than June guidance of up 0.5% to 1.5%, due to the timing of expenses between quarters and cost improvements realized during the quarter.

Changes in fuel prices increased earnings by $0.07 per share, offset by a decrease in earnings due to changes in currency exchange rates of $0.07 per share compared to the prior year. Compared to June guidance, changes in fuel prices and currency exchange rates decreased earnings by $0.03 per share.

Highlights from the third quarter included Carnival Cruise Line's partnership with Thrillist to create Island Hoppers, the first-ever comedy competition show at sea. Princess Cruises announced Phantom Bridge, a first-of-its-kind game combining digital and physical elements for the ultimate immersive escape room, which will launch onboard Sky Princess and Enchanted Princess.

AIDAnova was the first-ever cruise ship to be awarded the prestigious Blue Angel certification for excellence in environmentally friendly ship design by Germany's Federal Ministry for the Environment. Additionally, during the quarter, the company released its 2018 Sustainability Report, detailing the key initiatives and progress made in 2018 toward its 2020 sustainability performance goals.

 

Royal Caribbean to invest $110 million for Explorer of the Seas amplification

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 25 September 2019 25 September 2019

From coast to coast and bow to stern, Royal Caribbean International’s Explorer of the Seas will sail the Eastern Mediterranean in style come summer 2020. The cruise line has released details of the ship’s upcoming $110 million amplification that will debut a mix of unparalleled feats and Royal Caribbean hits. Guests can embark on historic adventures ashore and on board with new thrills, tastes and sights on deck, including The Perfect Storm racer waterslides, Giovanni’s Italian Kitchen, a fresh twist on a guest-favorite; a redesigned, resort-style poolscape with signature poolside bar The Lime & Coconut; and transformed kids and teens spaces. Beginning May 7, 2020, Explorer – the first amplified ship to cruise from Rome (Civitavecchia) – sets sail on 7- and 9-night itineraries to the best of Italy and the Greek isles, from Santorini to Mykonos and Crete.

New feats

Vacationers will soak up a new scene on Explorer’s maxed-out top decks. Adventures of every kind and for every guest will join the lineup of Royal Caribbean favorites already in play, like the FlowRider surf simulator, a decked-out Sports Court – complete with basketball, soccer and volleyball; rock-climbing wall, and mini-golf. The noteworthy experiences are:

– The Perfect Storm, the popular duo of waterslides, raise the stakes and friendly competition. Guests with the need for speed will race each other through three stories of twists and turns on Cyclone and Typhoon
– A reimagined poolscape brings a new, resort-style look and all-day island vibes, making for the ultimate place to unwind under the sun or stars with a wider variety of seating, from hammocks and daybeds to casitas and in-pool loungers. Adults looking for alone time can escape to the rejuvenated Solarium
– The Lime & Coconut is Royal Caribbean’s signature, poolside bar. The three-level slice of the Caribbean will serve up live music, vacation-mode cocktails and the best views of the action on board as well as the Mediterranean landscape from the rooftop deck

New culinary options

While sailing the Mediterranean, guests can savor even more flavors from around the world on board Explorer. Royal Caribbean will expand on the diverse offering of restaurants, bars and lounges that include Asian cuisine at Izumi, the popular Chops Grille American steakhouse, Boleros Latin lounge, Schooner Bar and more. New venues coming to the table include:

– Giovanni’s Italian Kitchen is the cruise line’s new take on its signature Italian restaurant. The reimagined trattoria will welcome guests to a casual setting and offer classics with a contemporary flair. From hand-tossed pizzas fresh out of the oven and made to order, to charcuterie delights, the elevated menu caps off this “Sunday supper” experience with a wide selection of wines and limoncellos from many of Italy’s well-known regions
– Playmakers Sports Bar & Arcade, the high-energy spot where guests can root for their home team as the game plays across 52 TVs. On offer will be an extensive menu of bar fare favorites with a twist and ice-cold brews, games of all kinds – arcade classics, trivia, tournaments and pool; and the Owner’s Box VIP area
– Johnny Rockets Express makes its way poolside with American favorites – even spiked shakes
– A standalone Starbucks comes aboard with its signature menu of drinks and pastries

More ways to play

Explorer’s amped-up activities and entertainment will take center stage. From a new laser tag experience to a top-to-bottom redesign of the dedicated kids and teens spaces, everyone can revel in the excitement. The featured highlights making their way on board are:

– Glow-in-the-dark laser tag debuts in Studio B, the venue that doubles as an ice-skating rink for guests and jaw-dropping shows. The latest Royal Caribbean challenge, Clash for the Crystal City will bring two clans – the Yetis and Snowshifters – head to head in the ultimate faceoff to escape extinction
– The new Adventure Ocean will come to life following a major makeover. The award-winning program for younger guests and their families introduces an open, imaginative layout with whimsical and immersive activities. Kids 6 to 12 years old can choose their own adventure, while babies and 3- to 5-year-olds enjoy specially designed spaces for each age group
– An exclusive teens hangout will sport a whole new look and features, including the latest in movies, gaming and music, and the addition of a private outdoor deck

During its time in the Eastern Mediterranean, Explorer will be joined by the reimagined Allure of the Seas, the iconic Oasis Class ship cruising the Western Mediterranean from Barcelona. Summer 2020 marks Royal Caribbean’s boldest season in Europe yet, with two amplified ships among the lineup sailing to bucket-list destinations filled with culture, history and adventure.

As Explorer rounds out its Europe season, the newly amplified ship will set course for the Caribbean. Guests can choose from 5- and 9-night Eastern and Southern Caribbean sailings, roundtrip from Miami, including visits to Royal Caribbean’s new private island destination – Perfect Day at CocoCay. For more information on Explorer’s Eastern Mediterranean and Caribbean itineraries, visit www.RoyalCaribbean.com.

Explorer of the Seas is the fourth ship in the Voyager Class to be transformed as part of the cruise line’s Royal Amplified fleet modernization effort. An investment of more than $1 billion, across 10 ships in four years, the program touches every facet of the guest experience and introduces a wide range of thrilling adventures spanning one-of-a-kind attractions and experiential dining and nightlife.