Carnival Cruises 2010 Annual Report Download - page 47

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Net cruise revenues increased $950 million, or 9.1%, to $11.4 billion in 2010 from $10.5 billion in 2009. This
was caused by a 7.1% capacity increase in ALBDs, which accounted for $750 million, and a 2.7% increase in
constant dollar net revenue yields, which accounted for $308 million, partially offset by the impact of a stronger
U.S. dollar against the euro and sterling, which accounted for $108 million. The 2.7% increase in net revenue
yields on a constant dollar basis was comprised of a 3.0% increase in net passenger ticket revenue yields and a
1.8% increase in net onboard and other revenue yields. The 3.0% increase in net passenger ticket revenue yields
was driven by stronger North American brand yields as business trends improved from a gradually recovering
economy, partially offset by slightly weaker EAA brand yields that were primarily caused by the challenging
winter season in the Brazilian market, which had significant increases in industry capacity. Net onboard and
other revenue yields increased 1.8% on a constant dollar basis due to higher onboard spending by our guests.
Gross cruise revenues increased $1.0 billion, or 7.7%, to $14.2 billion in 2010 from $13.2 billion in 2009 for
largely the same reasons as discussed above.
Net cruise costs excluding fuel increased $203 million, or 3.4%, to $6.1 billion in 2010 from $5.9 billion in 2009.
This was caused by a 7.1% capacity increase in ALBDs, which accounted for $421 million, partially offset by a
3.1% decrease in constant dollar net cruise costs excluding fuel per ALBD, which accounted for $196 million.
The 3.1% decrease in constant dollar net cruise costs excluding fuel per ALBD was primarily due to the benefits
from cost reduction programs and economies of scale and $61 million of gains recognized from the sale of P&O
Cruises (UK)’s Artemis and Cunard’s litigation settlement. On a constant dollar basis, net cruise costs per ALBD
excluding fuel and the gains recognized from the sale of P&O Cruises (UK)’s Artemis and Cunard’s litigation
settlement decreased 2.2% in 2010 compared to 2009.
Fuel costs increased $466 million, or 40.3%, to $1.6 billion in 2010 from $1.2 billion in 2009. This was driven by
higher fuel prices, which accounted for $417 million, a 7.1% capacity increase in ALBDs, which accounted for
$83 million and was partially offset by lower fuel consumption per ALBD. Gross cruise costs increased $734
million, or 7.5% in 2010 to $10.5 billion from $9.7 billion in 2009 for largely the same reasons as discussed
above.
Fiscal 2009 (“2009”) Compared to Fiscal 2008 (“2008”)
Revenues
Consolidated
Approximately 76% of 2009 total revenues are comprised of cruise passenger ticket revenues. Cruise passenger
ticket revenues decreased by $1.2 billion, or 10.6%, to $10.3 billion in 2009 from $11.5 billion in 2008. This
decrease was caused by lower pricing due to the impact of the economic downturn, as well as a stronger U.S.
dollar against the euro, sterling and Australian dollar compared to 2008, which accounted for $530 million. In
addition, the U.S. Center for Disease Control and Prevention’s (“CDC’s”) recommendations against
non-essential travel to Mexico as a result of the flu virus also adversely impacted our revenues because we had to
alter several of our cruise ships’ itineraries. This revenue decrease was partially offset by our 5.4% capacity
increase in ALBDs, which accounted for $618 million (see “Key Performance Non-GAAP Financial Indicators”
below).
The remaining 24% of 2009 total revenues is principally comprised of onboard and other cruise revenues, which
decreased by $159 million, or 5.2%, to $2.9 billion in 2009 from $3.0 billion in 2008. This decrease was caused
by lower onboard spending by our guests primarily as a result of the impacts of the economic downturn, as well
as the impact of the stronger U.S. dollar against the euro, sterling and Australian dollar compared to 2008, which
accounted for $94 million. The lower onboard and other spending was partially offset by our 5.4% capacity
increase in ALBDs, which accounted for $163 million. Onboard and other revenues included concession
revenues of $881 million in 2009 and $924 million in 2008.
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