While crews work to salvage the wrecked Costa Concordia ship off the coast of Italy, the ship's parent company is struggling to sail clear of stormy conditions.
Carnival Corp., the world's largest cruise company, reported third-quarter profits of $934 million, or $1.20 per share, compared with $1.3 billion, or $1.71 per share, in the same period last year.
In the wake of the January 2012 wreck of Costa Concordia, which ran aground, killing 32 of 4,200 people on board, Carnival also reported bookings for the remainder of 2013 and the first quarter of 2014 are behind the same period in 2012, with prices about the same.
For the full year, revenues are expected to be down 3% compared with 2012, due partly to higher fuel costs and political turmoil in the eastern Mediterranean area, the company said.
The cruise company, which runs 100 ships under 10 brands, including Costa, has been working to rebuild its image by investing $300 million in safety improvements on many of its ships, plus launching a new advertising campaign.
“During the past few months, Carnival Cruise Lines has seen a steady improvement in brand perception among U.S. consumers based on national market research data,” said Arnold Donald, president and chief executive of Carnival Corp.