Carnival Corp. to take big financial hit from Costa disaster

By
|

The loss of revenue sailings by the Costa Concordia for the remainder of fiscal year 2012 will cost Costa parent Carnival Corp. $85-95 million, Carnival Corp. estimated in a financial statement on Monday.

For the fiscal year ending Nov. 30, Carnival Corp. said losing the Concordia will have an impact of 11 to 12 cents per share.

In addition, Carnival Corp. said it will pay a $30 million insurance deductible for damage to the vessel, plus an approximate $10 million insurance deductible for third-party personal-injury liability.

Carnival Corp. said the company anticipates further costs that cannot be determined at this time. The Concordia is expected to be out of service for the remainder of the company's current fiscal year, if not longer.

A damage assessment of the vessel is under way, said Carnival Corp.

Carnival Corp. CEO Micky Arison said the families and loved ones of those who died in the Costa Concordia disaster “will remain in our thoughts and prayers.”

“At this time, our priority is the safety of our passengers and crew. We are deeply saddened by this tragic event and our hearts go out to everyone affected by the grounding of the Costa Concordia,” Arison said in a statement Monday.

The Concordia was carrying 3,200 passengers and 1,000 crew when it collided with rocks off the Italian island of Giglio on Jan. 13. Six people have died and another 29 are unaccounted for, according to Italy's Coast Guard.

Follow Donna Tunney on Twitter @dttravelweekly.

From Our Partners


From Our Partners

Unveiling Oceania Cruises’ New Voyages, Plus Caribbean Getaways
Unveiling Oceania Cruises’ New Voyages, Plus Caribbean Getaways
Register Now
TTC Tour Brands — How We Lead: What Tour Directors Know About Leadership
TTC Tour Brands — How We Lead: What Tour Directors Know About Leadership
Read More
Destinations on a Plate: Culinary Tourism
Destinations on a Plate: Culinary Tourism
Register Now

JDS Travel News JDS Viewpoints JDS Africa/MI