Caribbean hurricanes and the latest earthquake in Mexico have failed to veer Carnival Corporation dramatically off course after delivering record summer quarter profits.
Profits rose to $1.7 billion in the three months to August 31 from $1.4 billion in the same period in 2016.
Revenues for the company’s third quarter of $5.5 billion were higher than the $5.1 billion in the prior year.
Cumulative bookings for the first half of next year are well ahead of the prior year on both price and occupancy.
Booking volumes since June for the first half of 2018 have been running ahead of the same period last year at prices that are well ahead, according to the parent of brands such as P&O Cruises, Cunard and Carnival Cruise Line.
President and chief executive, Arnold Donald, said: “After the earthquakes in Mexico and a very challenging series of hurricanes, our thoughts are with all of those impacted and we are actively contributing to the relief and rebuilding efforts in the Caribbean and the southern US through monetary and other support.
“Many people throughout these areas have been impacted and several ports are temporarily unavailable.
“Fortunately, our owned destinations including Amber Cove, Dominican Republic; Cozumel, Mexico; Mahogany Bay, Honduras; Half Moon Cay and Princess Cays, Bahamas, as well as more than 40 other ports, plus all those in Mexico, are fully operational and welcoming guests.”
Several temporary port closures associated with the storms led to cruise disruptions which are expected to result in an estimated $0.10 to $0.12 per share reduction in earnings in the fourth quarter, he disclosed.
The company has resumed normal operations, with some itinerary modifications.
Donald, a keynote speaker at the Abta Travel Convention in the Azores, added: “Our record results, coupled with strong booking trends, have more than offset the anticipated earnings impact from these weather disruptions, enabling us to raise the mid-point of our guidance and positioning us to achieve the higher end of our previous earnings guidance range.
“Our performance affirms conviction in our company’s inherent ability to deliver sustained double digit return on invested capital in 2018 and beyond.
“We remain on track to achieve record cash from operations of $5 billion this year, and to continue to distribute cash to shareholders through steadily increasing dividends.”
He said: Our ongoing efforts to create demand well in excess of measured supply growth helped to drive five percent higher cruise ticket pricing.
“We have many innovative efforts to accelerate demand in 2018 and beyond including our recently announced digital streaming channel, OceanView, and our mobile gaming portfolio, PlayOcean, both launching this week.”
The company unveils OceanView and PlayOcean at an event in New York City’s Time Square on Thursday.
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