Carnival anticipating challenges in 2009

The chief executive of Carnival Corporation, Micky Arison, is predicting a “challenging year” coming up for the travel industry in 2009.

His forecast comes as Carnival is seeing its full-year profits decline from $2.4 billion in 2007 to $2.3 billion this year.

Net profits for the fourth quarter, ended 30 November, rose to $371 million from the previous year’s $358 million. Fuel cost increases of $84 million during the quarter were offset by cost cuts and higher cruise prices in the cruise line’s North American brands.

Arison noted that the group managed to produce “solid earnings” during a “very difficult” year in spite of fuel cost increases of 55 percent.

“As expected, 2009 is shaping up to be a challenging year in the travel industry,” he added. “Over the years we have positioned the company to weather the difficult economic environment we now face.”

One possible positive note for the coming year is the continuing fall in fuel prices, which could mean a reduction in fuel costs of as much as $278 million for the financial year.

“We have strong cash flows from operations, a solid balance sheet, and a secure liquidity position,” Arison said. “These factors combined with the outstanding value proposition inherent in a cruise vacation and our low cost structure will prove to be significant assets in the current environment.”

Thanks to www.travelmole.com for the above quotes, for more information on this article please visit their website.

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