Carnival Raises 2004 Forecast

Carnival Corporation bas raised its net yield guidance for 2004 to being up five to seven percent from its previous forecast of a two to four percent increase - "largely due to the weakness of the U.S. dollar and to a lesser extent due to strengthened booking levels during the Wave Season."

In its 10-K filing this week, Carnival also said that company-wide bookings were running 59 percent higher since the beginning of January than during the same period last year, which was adversely impacted by the build up to the war in Iraq.

Carnival said the increase in bookings was significantly above the company's 17.5 percent capacity increase for 2004.

However, with bookings up sharply and with Carnival attributing the increase in yields mostly to the weak dollar, it means that pricing is still an issue.

And, despite the improved outlook, Carnival is keeping its guidance at $2.02 for the year, up only $0.04 from its previous guidance of $1.98. For QI, Carnival expects earnings to be in the range of $0.21 to $0.22 up only slightly from its previous guidance which was in the range of $0.18 to $0.20.

Thus, while the trend is positive, Carnival's core recovery is relatively modest so far.

Analysts raised their price-targets as high as $61 compared to the trading price of $45.15 at press time and a 52-week high/low of $46.30 - $20.24.

In its filing, Carnival also said it is "possible that some more of our older ships may be sold or retired during the next three to four years, thus reducing the size of our fleet over this period."

This would most likely be the Holiday (1985), the Celebration (1987), the Royal Princess (1984), the Prinsendam (1988), and possibly the Costa Tropicale (1982).

In terms of "risk factors," Carnival listed the political and economic climate, competition throughout the vacation market, overcapacity, etc., and also the "lack of attractive port destinations for our cruise ships that could reduce net revenue yields and income."

Carnival went on to say that "attractive port destinations, including ports that are not overly congested with tourists, are major reasons why our customers choose a cruise versus an alternative vacation option. The inability to continue to maintain and increase our ports of call could adversely affect yields and income."

Carnival also identified its onboard revenue sources as services including, but not limited to, casino gaming, bar sales, gift shop sales, entertainment arcades, shore excursions, art auctions, photo sales, spa services, bingo games and lottery tickets, video diaries, snorkel equipment rentals, Internet and telephone usage, vacation protection programs and promotional advertising by merchants located in its ports of calls.

Cruise News | Top Cruise Stories

Mystic Cruises Fleet

Mystic Cruises Officially Announces Two Ship Order

Nov 15, 2018
Mystic Cruises today officially announced it had signed a contract for two more ships to be built…
Zero Emission

New Report: Zero Emissions Target

Nov 14, 2018
Zero emissions is the cruise industry’s long term ambition, both for water and air, and not only at…
SunStone Newbuild Rendering

SunStone Confirms Two More Expedition Vessels

Nov 13, 2018
SunStone Ships announced it had inked deals to build two more Infinity-class expedition ships, the…
Scenic Eclipse

Scenic Eclipse Delivery Delayed Again

Nov 13, 2018
In a statement, Scenic Luxury Cruises & Tours announced that the first sailing date for Scenic…
Norwegian Bliss

Cruise Lines 2018 Q3 Breakdown: By the Numbers

Nov 12, 2018
Cruise Industry News takes a look at the financial performance of the “big three” following the…
World Explorer

Mystic Cruises Orders Two More Expedition Ships

Nov 10, 2018
Mystic Cruises is expanding its push into the ocean-going expedition market and has ordered two…
Norwegian Escape

Norwegian Q3: Demand Continues to Accelerate

Nov 08, 2018
All signs continue to point to a robust demand environment continuing into 2019 and beyond for…
Celebrity Edge

First Photos: Celebrity Edge

Nov 06, 2018
The Celebrity Edge is now on her way to Terminal 25, located at Port Everglades in Hollywood, Fla.…
Gianni Onorato, CEO

Onorato: MSC Committed to Sustainable Growth in China

Nov 06, 2018
“We are very satisfied with the outcome of 2018 in China,” said Gianni Onorato, CEO of MSC Cruises.…
Kick off Ceremony of Large Cruise Ship Project

Carnival Corporation Launches Cruise Joint Venture in…

Nov 06, 2018
Carnival Corporation today announced that its cruise joint venture with China State Shipbuilding…
Thatcher Brown

Brown: Dream ‘Building Awareness’ in China with…

Nov 05, 2018
When the Explorer Dream debuts for Dream Cruises next April, it will become the company’s…
Industry Leader Panel

Chinese Cruise Market in ‘Readjustment’ Stage

Nov 02, 2018
The Chinese cruise industry is working on initiatives to stabilize its business environment…

Email Newsletter

Get the latest breaking cruise news. Sign up.

Cruise Ship Orderbook

123 Ships | 273,824 Berths | $70 Billion | View

Latest Magazine Issue | Fall 2018

CIN Fall 2018

In This Edition:

China

Shipbuilding

Food + Beverage

Asia/Pacific

Australia

Zero Emissions

Interior Design

Expedition