Carnival reports record earnings

CARNIVAL CORPORATION had a record net income of US$353 million, an increase over the $294 million reported in the year 2004.

Said Chief Executive Officer Micky Arison: "It is a testament to the resilience of our cruise business that despite an approximate 50 per cent increase in fuel costs for the quarter, and the worst hurricane season in our history, we were still able to grow earnings by 20 per cent to achieve record results."

Fourth-quarter revenues were US$2.6 billion compared to US$2.2 billion in the same quarter of 2004.

Mr. Arison says higher pricing and a continued focus on cost controls offset the US$180 million rise in fuel costs.

"All facets of our business, from contemporary to luxury, performed well overall during the past year," he said, with guest booking records in all areas.

Based on current bookings, he expects revenue growth of up to three per cent next year.

Carnival will take delivery of three new ships in 2006. The new ships will represent a five per cent increase in capacity.

Carnival recently announced an agreement with the Italian shipbuilders Fincantieri to build another four cruise ships. Two of those are scheduled to be delivered in 2008 and the others the next year.

The new ships will increase the cruise line's capacity eight per cent in 2007, and 6.4 per cent by 2009

­ Information taken from TravelMole