Carnival to Increase European Capacity by a Quarter
Carnival Cruises are expected to elevate capacity in Europe by 22% next year due to record profits of £1.2 billion in 2007. The American cruise line had yearly net profits that were up from £1.2 billion in 2006, as earnings in the fourth quarter ending 30th November 2007 were held back by growing fuel costs and higher dry dock outlay. Net profits for the final three months of the company's financial year dropped by nearly 14% and "significantly higher" costs of fuel were blamed.
Chairman and CEO of Carnival Cruises, Mickey Arison, said the group's European brands, which include the Carnival UK business of P&O Cruises, Cunard Line and Ocean Village, experienced another record year "absorbing substantial new capacity and driving significant improvement in unit operating profit".
Overall capacity will grow by 9% in 2008, prompted by the introduction of five brand new cruise ships across five brands. Advance bookings for the first half of 2008 are "well ahead" - with those for the second half "shaping up in a similar fashion".
"While our North American brands will grow capacity at a moderate rate of 3%, our European brands will increase capacity by 22% next year, including the full year operation of our new Spanish cruise line, Ibero Cruises," claimed Arison. "As we grow our European brands, we will be able to achieve economies of scale which will have a favourable impact on our unit costs and profitability." Fuel expenses are expected to climb by approximately £2 million in 2008. Carnival Cruises have a total of twenty-one cruise liners travelling to more than sixty destinations, including Mexico, Canada, and Europe.
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