US. Carnival Corp, the world’s largest cruise operator, said that its fiscal second-quarter bookings, through May, and even some in the key third quarter are suffering because of the war with Iraq and concerns about terrorism.
Carnival executives say they have had to resort to a new round of price discounting, matching recent moves by other operators.
“When people are buying duct tape, they aren’t thinking of buying vacations,” said Carnival chairman and chief executive Micky Arison.
Carnival executives disclosed that the company so far has hit 86% occupancy for its second-quarter cruises, compared with 92% a year earlier. Cruise lines normally sail at or above 100% occupancy because of the way cabins are sold.
Carnival said earnings for its fiscal first quarter, ended February 28, fell -2.1% to US$126.9 million, or 22 cents a share, from US$129.6 million, or 22 cents a share, a year earlier. Revenue rose +14% to US$1.03 billion from US$906.5 million, largely from a +15% increase in capacity.
