Carnival sounds profits alarm as it cuts prices to recover from Concordia tragedy
Tuesday 21 May 2013
Shares in cruise ship giant Carnival were hit today as moves to cut prices following a succession of PR catastrophes triggered a profit warning.
Carnival, the world's biggest cruise ship company, has been struggling since the Costa Concordia ran aground off the Italian coast in January last year, killing at least 30 people.
It suffered a further embarrassing setback earlier this year when an engine fire left its Carnival Triumph cruiser adrift at sea without power and sanitation, forcing more than 3000 passengers to endure unhygienic conditions as the ship was towed back to port. The industry has also seen several outbreaks of the norovirus vomiting bug on board ships this year.
Carnival's shares sank 379p, or 16 per cent, to 2013p today as the firm said booking volumes had risen but the price cuts would dent yields by up to 3 per cent. It slashed earnings per share guidance to between $1.45 and $1.65 against the previous $1.80-$2.10 guidance. The company operates 101 ships.
Shore Capital's Martin Brown said: "Elevated cancellations and greater levels of discounting appear to be the consequence of the PR disasters that have blighted Carnival this year.
"A period out of the front-page headlines and a demonstration of strengthening yields are clearly needed."
Much-loved cartoon character returns - without Sir David Jason
Liam Neeson's Downton dreams
Matt Smith is set to join cast of the Jane Austen classic - with a twist
Actress to appear in second series of the hugely popular crime drama
Olympic diver has made his modelling debut for Adidas
- 2 Scottish independence: Learn from Quebec's mistakes and beware of promises. Vote Yes.
- 3 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 4 Revealed after 75 years of secrecy: 'Fifi' the glamorous WW2 special agent who tested British spies' resolve
- 5 Have you heard about the film Singapore has banned its people from watching? Well, you have now
Thailand beach murders: Thai PM suggests 'attractive' female tourists cannot expect to be safe wearing bikinis
Scottish independence: Final opinion polls show undecided voters could swing result either way
Scottish independence: Almost half of No voters have felt 'personally threatened' by the Yes campaign
Isis release 'Flames of War' video warning Obama of attacks troops could face in Iraq
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Portuguese academic says British are 'filthy, violent and drunk'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
iJobs Money & Business
£70-90,000: Saxton Leigh: Our client a London Market Insurer are seeking a Pro...
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...