Carnival Cruise Lines sinks 34.2 percent in gross earnings

Gross earnings for Carnival Corp., the world’s leading cruise company, took a nosedive in the second quarter of 2003. The Miami-based firm netted gross earnings for $127.8 million, $65 million less than in the same period of time the year before.

However, revenues jumped from $990 million in 2002 to $1.03 billion this time around, a figure that represents a 26 percent increase compared to the previous year. Those figures only comprise part of the quarterly gains raked in by P&O Princess Cruises, the British company Carnival bought off in April.

Carnival execs admitted the war in Iraq dented the cruise industry at the peak of the season sales when tourists book reservations for spring and summer trips in the Northern Hemisphere.

Other factors that also wreaked havoc with the big vessel industry were the SARS outbreak and a string of viruses that hit a number of passenger liners.