Carnival Corporation reported net income of $194.2 million on revenues of $989.2 million for its second quarter ended May 31, 2002, compared to net income of $187 million on revenues of $1.08 billion for the same quarter in 2001.
Net income for the six months ended May 31, 2002 was $323.8 million on revenues of $1.89 billion, compared to net income of $314.9 million on revenues of $2.09 billion for the same period in 2001.
Earnings for the second quarter of 2002 were reduced by a $9 million loss, including related expenses, on the sale of Holland America Line's Nieuw Amsterdam and by $12 million from cancelled cruises. Revenues for the second quarter of 2002 were 8.3 percent lower than last year primarily because of lower cruise ticket prices, largely
attributed to the events of September 11, and a significant decline in the
number of guests purchasing air transportation from
the company. This was
partially offset by an increase in cruise capacity of 2.1 percent. Net revenue yield (net revenue per available berth day after deducting the cost of air transportation
and travel agent commissions) was down 5.3 percent, compared to the previous year's second quarter.
Partially offsetting the lower revenues was a 5.7 percent reduction in the
company's cost per available berth day (excluding the cost of air
transportation and travel agent commissions) due in part to the timing of
advertising expenditures. Second quarter 2002 results also did not include
any losses from the company's investment in Airtours plc, which was sold in
Commenting on the second quarter results, Carnival Corporation Chairman and
CEO Micky Arison said
he was pleased that the company has continued to
improve its performance since the events of September 11, noting that net
revenue yields in the second quarter improved significantly from the 7.5
percent decline experienced in the first quarter of 2002. "Our results in
the second quarter clearly demonstrate the continuing recovery of our cruise
business, in spite of the current economic uncertainty and political
unrest," he said. In addition, Arison noted that the results from the
company's "cost containment initiatives continue to mitigate the pressure on
net revenue yields."
Booking levels during the 2002 second quarter were substantially ahead of
last year. During the last few weeks, booking levels have been
approximately equal to last year's levels. Arison added that cruise pricing
has largely recovered from the significantly discounted levels last fall,
now running only slightly below the comparable period last year. On a
cumulative basis, advance bookings and average prices for the balance of
2002 remain below last year's levels, primarily as a result of the dramatic
slowdown in 2002 bookings last fall and the shift toward closer-to-sailing
"Based on bookings to date, we expect the trend in sequential yield
improvement to continue through the remainder of the year, with net revenue
yields expected to be down 3 percent to 5 percent in the third quarter and
up slightly in the fourth quarter," Arison noted.
During the second quarter of 2002, Holland America announced that it had
exercised its option for the construction of a fifth 1,848-passenger
Vista-class ship, which is scheduled for delivery in spring 2006. Looking
to the remainder of 2002, Carnival Cruise Lines plans to introduce the
2,124-passenger Carnival Legend in August 2002, offering the brand's
first-ever cruises from Europe. Following its European program, the Carnival
Legend will operate a series of voyages from various North American ports
and then reposition to Fort Lauderdale, Fla., to operate eight-day Caribbean
sailings beginning Nov. 10. Carnival Cruise Lines is also scheduled to
launch its largest passenger ship ever, the 2,974-passenger Carnival
Conquest, from New Orleans in mid-November 2002, and Holland America's
1,848-passenger Zuiderdam is scheduled to enter service in December 2002
from Fort Lauderdale.