Carnival Corp. 2020 Outlook

Carnival Corporation provided adjusted earnings guidance for 2020 on today’s Q4 and year-end earnings call from $4.30 to $4.60 per share, compared to 2019 adjusted earnings of $4.40 per share.

Carnival President and CEO Arnold Donald said that he expects cruise revenues to be up approximately 5 per cent on capacity growth year-over-year of 6.6 per cent.

At this point, he said, the company is entering 2020 with a record booked occupancy position but at slightly lower prices.

Donald noted the headwinds Carnival has faced this year, some of which will continue into 2020, including the impact of Cuba being off-limits to cruise calls, events in the Arabian Gulf, Hurricane Dorian, unscheduled drydocks and ship delays, compounded by a decline in market demand in Continental Europe, particularly Germany, while Southern Europe is also challenging.

Noting these as “unusual events,” Donald said they had had a $0.23 negative impact on 2019 earnings.

In order to improve the market situation and accelerate demand growth in Southern Europe, Donald said that two older ships are being removed from the Costa fleet in 2020, following the recent introduction of the new Costa Smeralda. He said the new ship is much more efficient than the ships being removed.

In the UK, Carnival has been able to grow revenue yield despite Brexit, and Donald noted that P&O Cruises’ New Iona is looking at a significant premium over other ships on comparable itineraries.

In North America, the Caribbean is strong and so is Alaska. However, Alaska is seeing what he called an over-concentration of capacity and will need to absorb another industrywide capacity increase of 10 per cent in 2020, on top of a 15 per cent capacity increase in 2019.

As for China, Donald said Carnival will focus on its new joint venture cruise line. Meanwhile, he said, Costa had a good year in China in 2019 and looks forward to another good year in 2020, with more direct business, but is also happy with its charter model.

Carnival will essentially have six new ships in six different markets for the full year in 2020, starting with the Carnival Panorama, which just entered service on the West Coast, the Costa Smeralda in Southern Europe; P&O’s Iona in the UK; the Enchanted Princess in Europe and North America; the Mardi Gras in Florida; and the Costa Firenze in China.

According to Donald, Carnival is also accelerating marketing and media spend in all of its key markets to drive demand in 2020.

Aircraft carrier HMS Queen Elizabeth returns home

A proud moment for the UK.

Portsmouth is now home to two aircraft carriers for the first time in a long time.

HMS Northumberland and RFA Tideforce also returned to warm welcomes in Devonport, say the Royal Navy. The ships’ flights made their way to their respective homes at RNAS Culdrose and Yeovilton.

It’s been a busy three months away for the Portsmouth-based HMS Queen Elizabeth which hosted British F-35 Lightning jets for the first time at sea as part of the WESTLANT19 deployment. Her sister, HMS Prince of Wales, is expected to be formally commissioned into the Royal Navy in the coming days.

Commanding Officer of HMS Queen Elizabeth Commodore Steve Moorhouse said:

“Homecomings are always a special occasion, but to be returning to Portsmouth, with HMS Prince of Wales welcoming us home makes this a particularly special occasion. Two of her escorts, frigate HMS Northumberland and tanker RFA Tideforce, returned to Devonport today.”

Image Crown Copyright 2019.

The ships flights also made their way to their respective homes at RNAS Culdrose and Yeovilton.

Image Crown Copyright 2019.

Commander of the Air Group, Captain James Blackmore, added:

“The five-week period of operational tests with UK F-35s from the UK Lightning Force was significant and historic. As the last pilot to fly Harrier from the deck of HMS Ark Royal in 2010, it filled me with tremendous pride to see UK fixed-wing aircraft operate once more from a British carrier.”

P&O Cruises issues Brexit reassurance

Image result for p&o britannia

P&O Cruises has issued a series of promises to its passengers in a bid to ease any fears over Brexit.

As uncertainty mounts over the UK leaving the EU, the line reminded passengers they will avoid foreign currency fluctuations due to onboard spending being in pound sterling.

P&O Cruises also reminded passengers that all cruises with the line will be protected by Atol and Abta.

P&O Cruises president Paul Ludlow said: “We want to reassure our guests that whatever is happening in the world of politics, their holiday and peace of mind is of the utmost important to us.

“Our Brexit promise is that no matter what the future brings, our guests can rest assured when booking a P&O Cruises holiday as they will always pay in pounds sterling in advance and can take advantage of a low deposit to secure their holiday.

He added: “Also, a P&O Cruises holiday offers unbeatable value as so much is included as standard including meals, entertainment, children’s clubs, flights and taxes.

“With sailings directly from Southampton and by choosing shore excursions in advance, our guests can explore Europe without the need for euros.

“In addition, the currency on the ships is pounds which covers all shopping, dining, drinks, indulgent treatments in the spa and a range of shops with favourite British jewellery, clothing and cosmetic brands. We also have the protection of both Atol and Abta.

“With over 180 years of P&O history and expertise, we guarantee to manage any potential impact on holiday plans and help our customers sail through Brexit and onto their next cruise.”