Carnival Corp. chairman and CEO Arnold Donald said he doesn't expect the truck attack at a Berlin Christmas market to affect the company's cruise business.

"There's no reason at this time to have a higher level of concern than normal," Donald said in a conference call with investment analysts held to discuss fourth quarter and year-end results.

Arnold Donald
Arnold Donald

Carnival has several brands that cater to Europeans, including German cruise line Aida. Most of the Europe cruises that are popular with U.S. tourists depart in the second and third quarters, however.

Carnival reported fourth-quarter net income of $609 million, up from $270 million for the prior year. Revenue rose $224 million, to $3.9 billion. For all of 2016, Carnival had net income of $2.78 billion, up from $1.76 billion, while revenue rose by $700 million, to $16.4 billion.

On other topics, Donald said he's confident that Cuba will approve cruises by a ship other than the Adonia after the ship's authority runs out in May. "We have every expectation that one or more of our brands will be approved from June on," he said.

Asked about how much Carnival was investing in a new guest-experience technology that Donald plans to unveil at the Consumer Electronics Show on Jan. 5 in Las Vegas, Donald said the money has come from an annual earmark of 3% to 5% of the capital expenditure budget for R&D and innovation. He said the technology, which will be invisible to the guest, has "breakthrough potential."

"We're excited about the potential, but the guest will decide," he said.

Commenting on the decision to devote a third Vista-class ship to the Carnival brand rather than send it to Australia, Donald said it was a "holistic" move with several factors involved, but one of them has been the economic power of Carnival Cruise Line.

"The Carnival brand is doing very, very, very well here in the U.S." Donald said.

Comments
JDS Travel News JDS Viewpoints JDS Africa/MI