Carnival Anticipates Moderate Outlook for 2006

Fuel prices and soft demand in the Caribbean are responsible for lower quarterly profits and a decreased outlook for the remainder of 2006, Carnival executives said in an earnings conference call with analysts last week.

Carnival said an $82 million fuel cost increase had significantly impacted its first-quarter earnings. While Wave season started strong, it said, bookings dipped in February, mostly due to sagging Caribbean sales.

Hurricanes were blamed, and Carnival CEO Mickey Arison noted that the damage in Cozumel, Mexico, the port destroyed by Hurricane Wilma last year, was significant for Carnival.

“We had built up Cozumel as a principle western Caribbean port,” he said. “Now we have to regroup.”