NEW YORK (AP) — Cruise passengers continue to shy away from Carnival Corp.'s namesake brand, despite lower prices. That, along with ongoing geopolitical fears in the eastern Mediterranean, is why the world's largest cruise company now expects revenue to drop 3 percent this year, worse than its prior forecast.
The Miami-based company did turn a $934 million profit for June through August, but that was down 30 percent from the same quarter last year.
Earnings totaled $1.20 per share, down from $1.71 last year in the same quarter. Revenue for the quarter rose less than 1 percent to $4.7 billion, and expenses outpaced growth. The company also took $176 million in charges related to two ships in its Costa line that are being taken out of service.
Shares fell 7 percent in early trading.