Bloomberg News

Carnival Cancels 10 More Triumph Cruises Amid Fleetwide Review

March 19, 2013

Carnival Corp. (CCL:US) canceled 10 more sailings of its Carnival Triumph cruise ship as it makes repairs on the vessel that suffered a crippling engine fire off the coast of Mexico in February.

Carnival, the world’s largest cruise operator, is making “significant” investments in the ship’s fire prevention and detection systems as well as its ability to offer hotel services while running on backup power, the company said today in an e- mailed statement. The Triumph’s 3,100-passengers were left with limited food and non-flushing toilets after the fire knocked out power to the ship, which had to be towed to shore.

The Triumph will return to service on June 3. Two voyages on the Carnival Sunshine, another ship now in dry dock, were also canceled, the Miami-based company said. Guests on the affected voyages will receive a full refund and a 25 percent discount on a future cruise.

The company’s staff has been working “virtually around the clock” to update the vessels, Gerry Cahill, president and chief executive officer of Carnival Cruise Line, said in the statement. The company will apply lessons learned from the Triumph incident to all of its ships, he said.

Three other Carnival vessels experienced problems last week, and the company cut its annual earnings forecast amid price discounting.

Carnival fell 2.1 percent to $33.21 at the close of New York trading. The stock has declined 9.7 percent this year, compared with an 8.6 percent gain for the Standard & Poor’s 500 Index.

To contact the reporter on this story: Christopher Palmeri in Los Angeles at cpalmeri1@bloomberg.net

To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net


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