Carnival Corp. Surpasses $1 Billion in Third-Quarter Net Income

Despite the poor economy, Carnival Corp. reported net income of $1.07 billion in the third quarter. Chairman Micky Arison called surpassing $1 billion in earnings “quite an achievement and a testament to the power of our global brands.”

“Our net income for the quarter exceeded our previous guidance, as a result of better-than-expected pricing on close-in bookings worldwide during the seasonally strong summer period,” Arison said.

Micky ARISONCarnival’s revenue was down 14 percent for the quarter, to $4.1 billion, but the company overcame a portion of that decrease with an 11.6 percent decrease in operating expenses.

Commissions and transportation, Carnival’s biggest line item expense, was down 22 percent, to $515 million.

Carnival said commissions and transportation dropped significantly because fewer passengers bought air-sea combo tickets. Also, airfares were lower on air-sea purchases, the company said.

Fuel costs were down 38 percent, to $327 million. Carnival’s passenger numbers for the quarter totaled 2.5 million, a 7 percent increase.

Looking ahead, booking volume for the remainder of 2009 and the first half of 2010 are up 19 percent, said Carnival. Occupancy levels are catching up with last year, but they are still slightly behind, with ticket prices also at lower levels, the company added.

“While the environment for travel remains challenging, we are encouraged by the strength we have had in booking volumes throughout the year,” Arison said. “Consumers are responding to the attractive pricing and product offerings our brands have in the marketplace.

“We have begun to experience an extension in the booking window as consumers realize the best value by booking early. For consumers, the value proposition has never been greater than it is now, so prospective vacationers looking for the best price should act quickly.”