Shares in Carnival (LON:CCL) fell more than £1 or 4.5% to £23.45 when the embattled cruise operator revealed it swung to a loss in its latest quarter.
The group, which is in fact the world’s largest cruise operator, said rising costs were to blame for the $15mln loss, which compares to a net profit of $37mln the year before.
First quarter cruise costs excluding fuel per available lower berth day rose 3.3% due to higher advertising costs as the company splashed out on luring holidaymakers back to its boats.
Chief executive Arnold Donald remained upbeat, telling investors earnings were better than expected thanks to an improvement in ticket prices for Carnival Cruise Lines and its European brands.
“We have experienced a solid wave season, with booking volumes up almost 20 percent globally surpassing last year's cumulative advance booking levels, albeit at lower prices,” Donald said.
“Many guests are booking further in advance, which increases visibility and builds confidence that yield comparisons will turn positive in the second half of 2014.
“Increased interest across our brands is an encouraging indication that our message is resonating as consumers recognize the strong value proposition and exceptional vacation experiences we provide.”