MIAMI (AP) — Carnival swung to a loss in its first quarter, stung by losing bets on future prices for fuel.
The cruise operator's adjusted results and revenue beat analysts' expectations, but it narrowed its full-year forecast and gave a second-quarter projection below Wall Street's view.
Its stock declined more than 3 percent in Tuesday morning trading.
Carnival is trying to bounce back from a series of high-profile incidents. It is contending with lawsuits stemming from a February 2013 Carnival Triumph cruise that went awry after a fire disabled the engine. And in 2012 the Costa Concordia hit a reef off Giglio island and killed 32 passengers and crew. Costa is a unit of Carnival.
Carnival has been using discounts to get passengers back onto its ships. It has also been reaching out to travel agents, launched a new ad campaign and issued a hassle-free vacation guarantee.
President and CEO Arnold Donald said in statement that first-quarter ticket prices were better than expected for Carnival Cruise Lines and its continental European brands. The company noted that booking volumes for the rest of the year are well ahead of 2013, but at lower prices.
For the three months ended Feb. 28, Carnival Corp. lost $15 million, or 2 cents per share. That compares with a profit of $37 million, or 5 cents per share, a year earlier.