Carnival Corp.'s profit nearly tripled in the 1st quarter on almost double the earnings as it paid less for the fuel to power its cruise ships.
Carnival reported fiscal Q1 net income of $142 million in the 3 months ended 29FEB, compared with $49 million in the same quarter last year. The company paid $187 million for fuel costs in the quarter, 41% less than the $318 million it paid in Q1 2015.
The Miami-based cruise giant, which operates 99 ships under several brands, also reported that bookings for the rest of 2016 are higher than last year’s historically high level, and travellers are paying higher prices.
"Our company is off to a strong start this year," Carnival Corp. President & CEO Arnold Donald told analysts during a conference call.
"Our ongoing guest experience innovations coupled with our increasingly effective marketing and communication efforts have driven additional demand for our brands, resulting in a strong booked position."
With fewer cabins left to be filled during the rest of the year, particularly in peak periods, the company's cruise brands should continue to see growing revenue, Donald said.
Carnival Corp. carried about 4% more pax during the quarter. Revenue rose 3.4% to $3.65 billion.