Carnival cut Southern Europe capacity as economic malaise deepens
- Details
- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 26 September 2019 26 September 2019
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."
Booked volumes, prices for 2020 turned lower in June, Carnival says
- Details
- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 26 September 2019 26 September 2019
Carnival Corporation & plc, the world’s largest cruise shipping cpmpany, said booked volumes and prices for 2020 turned lower versus year on in June, while new regulations will increase its fuel bill by $200 million next year
The group’s cumulative advanced bookings for the first half of 2020 are ahead of the prior year at prices that are in line compared to 2019 on a comparable basis.
“Since June, both booking volumes and prices for the first half of next year have been running lower than the prior year,” the company pointed out, the company said.
For full year 2020, the company expects capacity growth of approximately 7%. As previously indicated, in 2020 the company will increase its usage of Marine Gas Oil (MGO) as a percent of total fuel consumption as a result of the IMO sulfur emission regulations.
MGO is currently anticipated to represent approximately 40 %of fuel consumption for full year 2020 compared to approximately 20 %for full year 2019. Using fourth quarter September guidance fuel prices, fuel expense for full year 2020 is expected to be $1.8 billion compared to $1.6 billion expected for full year 2019.
The company currently expects depreciation to be approximately $2.4 billion for full year 2020 compared to $2.2 billion for full year 2019.
Carnival issues profit warning on oil price, weather and geopolitics
- Details
- Written by Kari Reinikainen Kari Reinikainen
- Category: Top Headlines Top Headlines
- Published: 26 September 2019 26 September 2019
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%.
More Articles ...
