Costa Concordia will not sail again for Carnival Corp. & plc, Micky Arison told Seatrade Insider on Friday in one of his first interviews after the deadly wreck. He also described the ‘terrible feeling’ of first hearing about the accident, underscored the staying power of the Costa brand and praised the crew for evacuating more than 4,000 people.
Carnival Corp. & plc reported a first quarter loss of $139m, or 18 cents per share, and sharply cut its earnings forecast for the full year to $1.40 to $1.70 per share, down from $2.55 to $2.85, largely because of the impact of Costa Concordia. The year-ago profit was 19 cents per share.
Negative fallout from the Costa Concordia capsize appears to be having the greatest impact on second quarter short Caribbean itineraries, which typically draw first-time cruisers, as well as on Europe routes, Wells Fargo Securities said in cutting its earnings forecasts for Carnival and Royal Caribbean.
Wall Street analysts are expecting Carnival Corp. & plc to break even in the first quarter, compared to posting a profit of 19 cents per share a year ago. The company’s implied guidance is a loss of 5 cents to 9 cents per share, down from its initial guidance of a 6-cent to 10-cent per share profit, taking into account 9 cents from the Costa Concordia incident and 6 cents for higher fuel costs.
Carnival Destiny’s $155m transformation is another piece of the $500m Fun Ship 2.0 initiative to provide more exciting options that appeal to a wider range of consumers, while also making a more consistent fleet and boosting revenue potential, Gerry Cahill told Seatrade Insider.
In what will likely be one of cruising’s most closely followed earnings reports and business updates because of the Costa Concordia disaster and its impact on bookings, Carnival Corp. & plc plans to release its first quarter results on Friday.
The news that Carnival has awarded Fincantieri a $155m refurbishment contract for Carnival Destiny was greeted with relief at the Italian shipbuilder, which has been struggling desperately to fill its yards, but also at Carnival-owned Costa Crociere, where harried executives were quick to describe the deal as evidence of the company’s value to the Italian economy.
Carnival Cruise Lines will undertake its most ambitious refit project when the 1996-built Carnival Destiny undergoes a $155m transformation next year that will incorporate all of the Fun Ship 2.0 dining, bar and entertainment elements plus changes unique to the vessel.
After the 49-day drydock at Fincantieri is completed, the ship will be renamed Carnival Sunshine. The work is scheduled from February to April.
US lawmakers were riveted by a Massachusetts couple’s account of their chaotic and terrifying evacuation from Costa Concordia and pressed cruise line officials for actions taken and lessons learned to prevent such a disaster happening again.