Carnival Corp: Demand for Cruises is Strong

Carnival Corp Chairman and CEO Micky Arison reports that third quarter results for the cruise industry's giant came in better than expected primarily due to stronger pricing on bookings taken closer to departure.

"Our earnings were up 12 percent driven largely by the successful introduction of new ships for both our North American and European brands in time for our peak summer season. Our North American brands enjoyed another strong European season, a solid Alaska season, and a modest year over year improvement in revenue yields in the Caribbean. The recovery in the Caribbean has continued as the demand for Caribbean cruises remains strong," Arison said. The company's European brands benefited from strong improvements in operating results with increased revenue yields on a dollar basis due to stronger Euro and Sterling currencies. Local currency revenue yields were down against very strong comparisons with the previous year.

And the outlook is strong. "For the balance of 2007 and into the first half of next year, bookings are well ahead of last year," Arison said. He cited the company's pricing strategy of early discounts on Caribbean cruises stimulating strong booking volumes early in the year - a strategy now driving revenue yield improvement into the fourth quarter. "We've already seen Caribbean pricing improvement in the back half of this year, and we are optimistic that it will continue into the first half of 2008," he added.