Cruise News: Carnival Beats Second Quarter Expectations

The Carnival Corporation has been able to overcome a 67% fuel cost increase and post a $390 million net profit for the second quarter of 2008. (This was the same earnings Carnival achieved in the second quarter of 2007)

The ticket revenue from their North American brands had been higher than expected, and the cruise costs in general were lower than expected (excluding fuel costs), which helped Carnival beat the second quarter projections given in March.

Carnival CEO Micky Arison said "We enjoyed strong revenue growth supported by solid cost controls, however higher fuel prices cost the company $158 million during the quarter.” Carnival estimates that 2008 fuel costs will be $752 million more than in 2007. It is evident that no one escapes this continuous increase in fuel costs.

The Carnival guests seem to be tightening their belt like everyone else. But they continue to cruise and book at very acceptable levels. Many people still see the value offered from a cruise, giving the industry a favorable position in a slumping economy.

People still love to travel, and taking a cruise continues to be a very popular choice. The perfect place to sit back, relax and be pampered. Not to mention that a cruise package includes superb dining, children’s programs, nightly Vegas/Broadway style shows, fitness centers, exciting destinations, swimming pools and saunas, 24-hour room service, auctions, meeting rooms, and a variety of other activities.

It should also be noted that Carnival is also amoung the top three most popular cruise lines today!!