The impact of “significantly higher” fuel prices dented quarterly profits at Carnival Corporation.
The world’s largest cruise conglomerate saw net profits for the three months to May 31 decline to $252 million on revenues of $3.2 billion.
The figures compare with $264 million profit on revenues of $2.9 billion for the same three months in 2009.
The price of fuel increased by 64% to $498 per metric ton in the second quarter from $304 in the equivalent three months last year.
Fuel costs for the company’s third quarter to the end of August are expected to increase by $74 million compared with last year.
Chairman and chief executive Micky Arison said better-than-expected net revenue yields and cost reductions had helped the company exceed its March guidance for the second quarter of its financial year. And he was optimistic about the crucial summer peak period.
Commenting on the second quarter, Arison said: “We were encouraged to see revenue yields turn positive for the first time since late 2008. Improving revenue yields, combined with an 8% capacity increase and ongoing cost control efforts, offset significantly higher fuel prices.”
Looking forward to the current three months, he added: “Considering recent global economic concerns and other world events, our advance bookings are holding up reasonably well and remain in line with our expectations.
“We believe this will lead to earnings growth in both the third and fourth quarters. The summer season, which is our strongest and most important quarter of the year, is shaping up particularly well.”
Booking volumes since March for the second half of the year have been running slightly ahead of the prior year at higher prices, the company said.
“At this time, cumulative advance bookings for both quarters are at higher prices with occupancies for the third quarter in line with the prior year and for the fourth quarter slightly behind last year.”
The company’s fifth and sixth new ships of the year – Holland America Line’s 2,106-passenger Nieuw Amsterdam and Cunard Line’s 2,092-passenger Queen Elizabeth – will be introduced in Europe in the second half.
Carnival took delivery of two new ships during the second quarter: P&O Cruises’ 3,100-passenger Azura and The Yachts of Seabourn’s 450-passenger Seabourn Sojourn.
Contracts were also finalised for the construction of two 3,600-passenger ships for Princess Cruises for delivery in May 2013 and 2014.