Media
Media
Cruise giant Carnival today said it would take a financial hit after the Mexico swine flu outbreak forced it to change routes for 27 ships.
The group, which operates P&O Cruises and Princess Cruises, said second quarter earnings would be cut by around 5 US cents a share after it overhauled itineraries last minute to avoid Mexican ports.
Carnival – the largest cruise operator in the world – announced last Friday it will resume stops at Mexico from around mid-June.
But it said the financial toll could rise for some weeks after June 15, with a potential total impact for full year earnings of as much as 10 US cents a share.
It said 16 Carnival Cruise Lines routes were impacted, as well as six for Princess Cruises and five for Holland America Line, with some all-Mexico itineraries having to be completely altered.
Cancellations by affected passengers also saw it slash prices on many cruises to fill empty spaces.
But the group has only been offering passengers the option to re-schedule cruises and not refunds.
Micky Arison, Carnival chairman and chief executive, said: “Our vessels are resuming their original itineraries as soon as practical, but will all be back by the middle of June.
“The Mexican coastal resort areas where our ships call are some of the most popular destinations for North Americans vacationers.”
But shares in Carnival rose 4% despite the news.
Fears over the impact of swine flu on travel firms have receded in recent weeks as worries over the severity of the outbreak has eased.
Firms such as British Airways, Thomas Cook and TUI Travel saw their shares plummet in the first few days after the virus came to light, but have since clawed back much of the ground lost.
TUI, which owns Thomson and First Choice, said only 250 of the 2,500 passengers in Mexico at the time of the flu crisis had opted to fly home early.
It added most of those due to fly on cancelled flights had chosen to switch destination rather than take a refund.
Source: Ireland on-line
qq.com