Carnival profits rise amid strong demand

21st Sep 2010 14:23

Cruise operator Carnival said holidaymakers were still queuing up to book places on its boats in spite of the tough economy as it posted a rise in third quarter revenues and profits.The operator of P&O and several other cruise brands operating in the UK and elsewhere said pre-tax profits in the three months to August 31 rose to $1.3m (£0.83m) from $1.1m over the same period the previous year as revenues climbed to $3.38bn from $3.1bn.'Despite ongoing economic concerns, cruise ticket prices remained strong close to sailing rewarding consumers that booked early,' chairman and chief executive Micky Arison said. 'We enjoyed robust demand across all products during our seasonally strong summer period.'Carnival saw a 6.2% rise in capacity between the two periods. The rise in profits was held back slightly by higher fuel costs due to the rise in crude oil prices, but Carnival managed to achieve other cost savings.Arison is optimistic on prospects for the rest of the year.'The booking environment has remained solid and we expect revenue yields to continue to improve in 2011 and beyond as the economy regains its footing,' he said. 'Consumers continue to embrace vacations as a much needed escape from the rigors of daily life, while cruising remains an increasingly attractive option for those seeking greater value for their vacation dollar.'