Carnival announces better than expected profits

Published:  26 Sep at 10 AM

Shares in Carnival, the cruise ship operator, have risen as the company announced better than predicted results for the third quarter of the year. Analysts, and the cruise company, expected profits to be hit after the sinking of the Costa Concordia off the coast of Italy in January this year.

However, a $1.33 billion profit for the three months saw shares gain three per cent in New York. Profits for the same quarter a year ago were $1.34 billion. Carnival said the results were partly due to the fact that it was managing to generate more revenue from its passengers.

The Costa Concordia capsized after hitting rocks in the shallow waters off Tuscany. The disaster cost the lives of 32 of those on board. A report into the incident blamed the actions of the ship’s captain but also found that Carnival-owned Costa should bear some of the responsibility.

Micky Arison, the company’s chief executive and chairman, said Carnival intends to focus its efforts on tapping into the emerging markets. Next year will see the introduction of a Princess Cruises programme in Asia to focus on the Japanese market and a second Costa ship is to be deployed to China.

Carnival currently runs a fleet of 100 vessels operating under a number of different brands including Seabourn, Princess, Holland America, Cunard and P&O.