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Travel industry news

21 Jun 2019

BY Gary Noakes

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Cuba ship visits ban hits Carnival

The ban on US cruise ships calling at Cuba and events in Europe hit Carnival Corporation’s second quarter earnings.

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Cuba ban and a tougher market in Europe hit Carnival

President Trump imposed a short notice ban on ships visiting Cuba earlier this month, reversing liberalisation introduced by President Obama and leaving cruise companies to hastily reorganise itineraries.

 

Carnival said “the suddenness of the regulatory change to this high yielding destination has led to a near-term impact on revenue yields”.

 

Carnival Corporation chief executive Arnold Donald told the Miami Herald: “The reality is Cuba is gone for the foreseeable future and so it didn’t add into plans for next year and therefore, that higher-yielding itinerary is off the table.”

 

Donald added that the economic recession in Italy, “yellow vests disruptions” in France, and the resurgence of Turkey and North Africa as holiday destinations had made it harder for Carnival to compete in Europe.

 

Carnival lowered its full-year earnings forecast after seeing adjusted net income for the six months to the end of May fall from $864 to $795 million.

 

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