Carnival Corp. Net Income Down In Q1, But Outlook Remains Positive
Bruce Parkinson, Open Jaw
Carnival Corporation has released its first quarter earnings report, and while the company’s net earnings are down somewhat from the year before – dragged by fuel and other higher costs -- the cruise giant says bookings for the rest of 2019 are trending ahead of last year.
“First quarter earnings included revenue growth from higher capacity and improved onboard spending, offset by the timing of cost increases and a drag from fuel prices and currency compared to the prior year,” said Carnival Corp. CEO Arnold Donald in a written statement.
All told, the company saw GAAP net income of US$336 million in the first quarter of 2019, down from $391 million the previous year. Revenues, however, were $4.7 billion, up from $4.2 billion.
Highlights from the first quarter included the delivery of AIDAnova, the first cruise ship in the industry powered at sea by liquefied natural gas, and the delivery of Costa Venezia, the first Costa ship designed for the Chinese market. Princess Cruises expanded its MedallionClass experience onboard Regal Princess, with three additional ships to follow in 2019.
Looking ahead to the rest of 2019, Carnival Corp. said advance bookings are ahead of last year at comparable prices. As a result, even with increased capacity there is less inventory remaining for sale than at this time last year.
“Booking trends achieved during wave season rivalled last years’ historical highs and were consistent with the demand trends we experienced going into the year, building further confidence in our full year guidance,” Donald said.
“For our North America and Australia brands, our booked position is ahead of the prior year at higher prices while our Europe and Asia brands are well ahead of the prior year at lower prices. Our brands are strong and growing, including Continental Europe, where we continue to expect revenue growth driven by double-digit capacity increases.”
Bruce Parkinson Editor-in-Chief
An observer and analyst of the Canadian and international travel industries for over 25 years, Bruce uses the pre-dawn hours to prepare a daily news and information package to keep industry members up to date.