Posted by Admin | March 23rd, 2010

Despite high fuel costs that have pushed up the overhead costs, Carnival is boosting its forecasts for 2010. They claim more people will be booking and prices, in general, have risen–helping to offset the increased overhead prices from rising fuel costs.

“I think we’re surprised at the strength of pricing that has come back this year,” said Howard Frank, vice chairman and chief operating officer.

In addition to raising its fiscal-year earnings outlook, Carnival said it expects revenue per bed per day to rise 2% to 3%. It had forecast revenue yields flat to up slightly.

Carnival also forecast second-quarter earnings of 26 cents to 30 cents, with revenue yields up 1% to 2% excluding currency changes. Analysts projected a 24-cent profit.

These are pretty strong earnings for a company that should be getting hurt even more than it currently is by the recession. Cruise lines are basically luxuries and luxuries suffer the most during tough economic times. Still, with innovative business strategies, this bad luck can be reversed.