Carnival cheers investors with new chief exec

CRUISE operator Carnival said yesterday its chief executive Micky Arison, who has been in charge since 1979, will be replaced by board member Arnold Donald, as the company continues to struggle with a series of mishaps that have hurt bookings.

The company, which is listed in London and New York, said Donald will take over on 3 July and Arison will continue to serve as chairman.

Carnival, which operates the Carnival, Holland America and Costa cruise lines, also reported a second-quarter profit that beat analyst estimates, helped by lower fuel prices.

However, the company said bookings and prices for the rest of the year were lower than last year.

Recent mishaps that have hurt the company’s reputation include an engine fire aboard the Carnival Triumph that left the ship adrift for days in the Gulf of Mexico. This follows the sinking of the Costa Concordia last year.

Revenues for the three months to the end of May fell two per cent to $3.5bn, while net income rose from $14m a year ago to $41m.

Its shares closed 5.3 per cent higher, making it the biggest riser on the FTSE 100.