Carnival Increases Fuel Surcharge

Carnival Corp. has raised the fuel surcharge for six cruise brands to $7 per day for the first two passengers in each cabin. The surcharge was $5 per day.

Carnival, Costa, Princess, Holland America, Cunard and Seabourn will apply the higher surcharge only to bookings made after April 20. The total surcharge is capped at $98 each for the first two passengers. The Carnival brands are also adding a fuel surcharge of $2 per day for the third, fourth and fifth passengers in any cabin. That fee is capped at $28.

Carnival said the increase is unrelated to the agreement it reached with Florida’s attorney general to refund $40 million in fuel supplements it had charged to passengers who booked cruises before the supplement was announced on Nov. 7.

The attorney general said in its settlement with the cruise companies that the lines could charge fuel supplements but that customers must be alerted to the fees at the time of booking.

Royal Caribbean Cruises Ltd.’s three brands made a similar agreement with the attorney general before Carnival did. Royal Caribbean International, Celebrity and Azamara reimbursed $21 million in retroactive fuel surcharges.

RCCL has not raised its fuel surcharge. But Tim Conder, managing director of leisure equity research with Wachovia Capital Markets, said after Carnival reached the agreement with the attorney general, he was not surprised Carnival raised its surcharge, and he expects RCCL and other cruise lines to follow suit.