Carnival Cruise Line Posts Q3 Profits

September 19, 2008 4:37 p.m. EST

New York, NY (AHN) - The world's largest cruise line, Carnival Corporation, posted a profits slump despite sales growth during peak vacations last summer.

Carnival's net profit was at $1.3 billion for the quarter ending August 31 from $1.4 billion over the same quarter last year. Revenues, on the other hand, increased at $4.8 billion as against $4.3 billion.

Fuel related expenses were at $230 million during the quarter, up 77 percent. Fuel is expected to increase by $678 million by end 2008 over last year but current fuel surcharges are expected to cushion increasing fuel costs.

The performing dollar is seen to cur fourth quarter profits by $33 million but fuel expenses have decreased by $60 million since June.

Last summer, Carnival posted increased revenue yields with European brands increasing capacity at 24 percent.