Costa Concordia sinking could cost Carnival $95m

Travel Expert Simon Calder: "You have no rights at all if you've already booked"

The sinking of the Costa Concordia could cost parent firm Carnival up to $95m (£62m; 75m euro), the firm has said in a statement.

Carnival shares fell 16% on Monday after it said it expected the loss of earnings from the capsizing to be between $85m and $95m.

The ship ran aground on Friday night off Italy's coast, killing six people.

Italian, German, French and British nationals were among the 3,200 passengers on board.

"The vessel is expected to be out of service for the remainder of our current fiscal year if not longer," it said in a statement to the London Stock Exchange.

"For the fiscal year ending November 30, the impact to 2012 earnings for loss of use is expected to be approximately $85-$95m or $0.11-$0.12 per share."

Analysts believe the capsizing could affect holiday plans for potential cruise customers.

Shore Capital analyst Greg Johnson said: "We would highlight the potential impact on booking yields in an environment where booking patterns remain subdued."

Carnival said it had insurance coverage for damage to the vessel with an excess of $30m.

Carnival

Last Updated at 19 Dec 2014, 11:30 ET *Chart shows local time Carnival intraday chart
price change %
2810.00 p -
-3.00
-
-0.11

It added it "anticipates other costs to the business that are not possible to determine at this time".

'Deeply saddened'

Micky Arison, chairman and chief executive of Carnival Corporation, said: "At this time, our priority is the safety of our passengers and crew.

"We are deeply saddened by this tragic event and our hearts go out to everyone affected by the grounding of the Costa Concordia and especially to the families and loved ones of those who lost their lives."

Carnival Corporation is the world's largest cruise ship operator. It owns 11 brands, including P&O, Cunard and Princess Cruises.

It is a dual-listed company, with headquarters in Southampton in the UK and Miami in the US.

Carnival plc, the British side of the business, is concerned with UK operations, but has responsibility for Costa Cruises, Carnival Cruises and Holland America Line.

More on This Story

Cruise disaster

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.