Carnival Cruise Lines has reported net income of $46.3 million for its first fiscal quarter, ending February 28, on revenues of $231.8 million, compared to a net income of $46 million on revenues of $150 million in its first quarter last year.
While revenues soared 52 percent over the same period last year, the company's profits were said to have been curbed by its acquisitions.
Carnival reported an average fleet wide occupancy level of 106.5 percent, carrying a total of 176,831 passengers, an increase of 29 percent over last year, when the reported numbers did not include the four Holland America Line ships and the three Windstar vessels.
The company's overall occupancy rate was down compared to last year's reported occupancy level of more than 110 percent for the period. As a percentage of revenues earnings were also down from 30 percent in 1988 to 20 in 1989. On a per berth basis, net earnings in 1989 were $3,400, compared to $5,500 in 1988.
According to a statement from Carnival, the company was pleased with its first quarter results and said that it had expected earnings to be flat due to the costs associated with the purchase of Holland America and that company's seasonality. (HAL does best during its lucrative Alaska season.)
At press time, Carnival's shares closed at slightly more than $16 on the American Stock Exchange.
Market factors inherent to the cruise industry, depressed regency Cruises 1988 earnings.
Regency Cruises has reported that net income was down 37 percent in its fiscal year 1988 compared to 1987, with net income of $3,955,000 for the year ending December 31, compared to net income of $6,312,000 for the previous year.
Revenues increased to $87,738,000 in 1988 compared to $65,334,000 in the previous year.
Regency Cruises also reported lower revenues for the fourth quarter ending December 31, 1988 at $18,545,000 compared to $20,612,000 for the same quarter a year ago. The company posted a net loss of $1,650,000 compared to net income of $1,678,000 in the previous year's fourth quarter.
According to William Schanz, Chairman and CEO of Regency Cruises, the historically competitive industry conditions in the fall were exacerbated by the effects of Hurricane Gilbert, which caused considerable damage to Jamaica, where Regency's primary operating port is located (Montego Bay).
Earlier in the year, Regency was forced to change itineraries from its traditionally popular sailings into the Panama Canal, when the unrest and tense political situation there caused Americans to change their travel plans.
Schanz also commented that the "first quarter 1989 bookings improved substantially compared to the previous quarter, but were affected adversely by a forty day stoppage of the Regent Star due to technical reasons (interruption was insured) and due to a strike by Eastern Airlines, one of our larger carriers of Air/Sea passengers to the Caribbean."
Last December, Regency added a third ship to its fleet, the Regent Sun, increasing fleet capacity by nearly 50 percent. This summer, the line is positioning two ships in Alaska, becoming the third largest operator in the region. Schanz said bookings were proportionately ahead of last years and that he anticipated a successful season with a positive contribution to overall earnings.
At press time, Regency Cruises was quoted at below $2 on the NASDAQ National Market.