Wednesday, November 17, 2010

Carnival cruise profits scuttled by cruise liner fire

The Carnival Cruise Lines took a heavy blow to its image when the Carnival Splendor cruise liner fire broke out. The ship recently was towed to port and is expected to need at least two months of maintenance. The Carnival company expects to lose up to 20 percent of its fourth quarter stock income.

Carnival cruise company to forfeit 1/5 of share price

Because of the Carnival luxury cruise ship fire, there have been some significant losses within the Carnival Cruise lines. The business is expected to drop at least 7 cents per share on its price following the fire aboard the Carnival Splendor. At the very least, a 20 % drop in stock earnings within the fourth quarter is expected by Carnival. This is all due to the event, reports ABC. The loss expected is way too large. It’s about $56 million total. Because of repair costs in order to fix the Carnival Splendor following the first and the loss of business, this loss was expected.

The Splendor repairs

Days ago the Carnival Splendor luxury cruise ship got the San Diego. It was in the Gulf of Mexico before that. The Carnival Splendor caused the vessel to go dead within the water, and the Carnival cruise turned out to be a Carnival tow to San Diego, with cruise ship passengers stuck in deplorable conditions. The ship has to be investigated by inspectors. Maintenance can start right after that. The ship will not be working for a while. Until at least Jan, it could be worked on. Princess Cruise, Cunard and Holland America cruise lines are all owned by Carnival making it the largest operator within the world.

Refunds and discounts to anybody displaced

People who had booked passage on the Splendor can be compensated by the company. A 25 % discount on a future cruise along with a refund on airfare and cruise are getting given by Carnival.

Citations

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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