Monday, November 22, 2010

Carnival Cruise Lines profits to fall following luxury cruise ship fire

The recent Carnival Splendor fire was a heavy blow to the Carnival cruise business. The ship recently was towed to port and is expected to need at least 2 months of repairs. A 20 percent loss of fourth quarter earnings is expected by the company. Resource for this article – Carnival Cruise Lines earnings to plummet after cruise ship fire by Personal Money Store.

Carnival Cruise lost a fifth of stock prices

Carnival Cruise Lines has recently disclosed some expected heavy losses as a result of the Carnival cruise liner fire. After the Carnival Splendor fire took place, about 7 cents per share is expected to be lost. Overall, Carnival, according to ABC, is anticipating a loss on its fourth quarter revenue of at least one-fifth, or 20 %, of its stock income because of the event. All told, it should add up to $56 million. The company will be losing revenue not only due to a loss of business but also considerable repair costs for patching up the Carnival Splendor following the fire.

Repairs going for Splendor

Days ago the Carnival Splendor luxury cruise ship got the San Diego. It was within the Gulf of Mexico before that. Due to the Carnival Splendor fire, the members on the vessel had to sit in terrible positions while getting towed. This cruise ended up being just a tow to San Diego. Repairs won't be able to start on the vessel until the investigators finish inspecting it. Until at least January, the ship will be out of service. Throughout the whole world, the largest operator for cruises is Carnival. Princess Cruise, Holland The United States cruises and Cunard are all owned by Carnival.

Those found on the ship will get refunds and discounts

The company is going to compensate all people who were on the Splendor. Carnival is refunding both cruise and airfare and will offer a 25 percent discount on a future cruise with the company.

Details from

ABC News

abcnews.go.com/Business/wireStory?id=12160946

ABC News

abcnews.go.com/Travel/carnivals-splendor-cruise-til-mid-january/story?id=12160812&page=1



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