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November 7, 2007 – As a result of the
continued rapid escalation of fuel prices, the
North American brands of Carnival Corporation
& plc (NYSE/LSE: CCL; NYSE: CUK) have
announced they will implement a fuel
supplement of $5 per person per day.
The fuel supplement, which only applies to the
first and second guests in a stateroom and
will not exceed $70 per person per voyage, is
effective on all bookings for voyages
departing on or after Feb. 1, 2008 on the
following Carnival Corporation & plc brands –
Carnival Cruise Lines, Costa Cruises, Cunard
Line, Holland America Line, Princess Cruises,
and The Yachts of Seabourn.
According to Carnival Corporation & plc
Chairman and CEO Micky Arison, the recent
spike in fuel prices has dramatically impacted
the company’s operating costs, thus
necessitating the supplement. The price the
company pays for fuel has increased 140
percent over the last three years, with a 50
percent increase occurring in just the last
seven months.
“Earlier this year, we implemented a
supplement for our European brands. We had
hoped to avoid a similar supplement for our
North American brands but with the price of
oil approaching $100 a barrel this is no
longer possible. The implementation of the
fuel supplement beginning February 1 for our
North American brands will result in consumers
paying approximately one-third of our
year-over-year fuel cost increases over the
first six months of the fiscal year,” he said.
Arison added that the company had been
considering a supplement for some time but
held off as long as it could. “We are hopeful
fuel prices will someday return to a level
that will enable us to eliminate this
supplement. Until then, we believe that guests
sailing on our North American brands will
understand the dilemma that soaring fuel
prices has caused for our company and industry
and that a fuel supplement was needed to
enable us to continue offering the high
quality cruises our guests have come to
expect,” Arison explained.
The fuel supplement of $5 per person per day
will be applied to all new and existing
bookings for cruises on or after February 1,
2008. For existing reservations, travel agents
will receive $10 per booking in administrative
compensation for notifying their clients of
the new fuel supplement and collecting the
additional funds. Carnival Corporation & plc
brands will provide additional information on
the fuel supplement via their respective Web
sites, as well as through various marketing
and collateral materials.
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