Carnival Corporation & plc, the Anglo-American cruise shipping group, has issued a profit warning, citing several different factors as causes of the weakening outlook
The company now expects full financial year year 2019 adjusted earnings per share to be in the range of $4.23 to $4.27, reflecting recent fuel price increases, compared to June guidance of $4.25 to $4.35 and 2018 adjusted earnings per share of $4.26.
Weather related voyage disruptions, the tensions in the Arabian Gulf and a ship delivery delay are expected to have a financial impact of $0.04 to $0.06 per share compared to June guidance. Changes in fuel prices and currency exchange rates are expected to decrease earnings by $0.08 per share also compared to June guidance.
A further reduction in guidance for ticket and onboard revenue worth $0.06 per share in part contributed to by the high level of close-in voyage disruptions was also offset.
“However, due to an $0.08 impact from the recent spike in fuel prices caused by geopolitical events, we are reducing our full year guidance for 2019 by $0.05 per share," Carnival said in a statement.
Based on current booking trends, the company expects full year 2019 constant currency net cruise revenues to be up approximately 4.0%, with capacity growth of 4.2%
“The company continues to expect its North America & Australia segment yields to be up for the year, but slightly less than previous guidance while its Europe & Asia segment is still expected to be down for the year but slightly more than previous guidance,” it said.
The company expects full year net cruise costs excluding fuel per ALBD in constant currency to be up approximately 0.3 %versus the prior year compared to June guidance of up approximately 0.7%.