Carnival Corporation & plc has reduced capacity in Southern Europe, where economic conditions have weakened and faced deployment changes at a short notice on geopolitical issues, which have a negative effect on profitability.
“We have taken actions to bring capacity in Southern Europe more in line with demand, reflecting the current conditions which have been heavily influenced by ongoing economic malaise, the uncertain geopolitical environment and recent trends in consumer confidence,” President and Chief Executive Officer Arnold Donald said in a statement.
Donald added: "As a truly global cruise company, with nearly 50% of our guests sourced outside of the U.S., we are facing a number of current headwinds, including weakening economies affecting our Europe & Asia segment, a strong dollar and of course, the IMO 2020 regulations, and we are working to mitigate them.
“We have also made close-in deployment changes, including those made to address the recent situation in the Arabian Gulf, which has had an impact on recent booking trends and ticket prices.”
“While we are subject to uneven economies in the short run, the global aspect of our business has proven to be a strength over time, producing our industry leading position with over $5 billion in cash from operations, attractive returns on capital and the strongest balance sheet in the industry."