This increase was caused by 163 million 34 capacity increase in ALBDs 67

This increase was caused by 163 million 34 capacity

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This increase was caused by: $163 million – 3.4% capacity increase in ALBDs; $67 million – 2013 net currency impact and $47 million – slight increase in occupancy. These increases were partially offset by: $191 million – decrease in cruise ticket pricing and $44 million – decrease in air transportation revenues from guests who purchased their tickets from us. Our cruise ticket pricing decline, which was affected by the ongoing challenging economic environment in Europe, was caused by our European brands. The remaining 19% of 2013 total revenues were comprised of onboard and other cruise revenues, which increased $45 million, or 4.3% to $1.1 billion in 2013 from $1.0 billion in 2012. This increase was principally due to our 3.4% capacity increase in ALBDs, which accounted for $36 million. Onboard and other revenues included concession revenues of $370 million in 2013 and $356 million in 2012. Costs and Expenses Consolidated Operating costs and expenses increased $304 million, or 2.9%, to $10.6 billion in 2013 from $10.3 billion in 2012. This increase was caused by: $291 million – 2.9% capacity increase in ALBDs; $176 million – impairment charges related to two smaller Costa ships; $56 million – additional costs and expenses related to the 2013 Carnival Triumph voyage disruptions, net of third-party insurance recoverables of $20 million; $46 million – 2013 net currency impact; $46 million – additional ship repair and maintenance expenses; $34 million – nonrecurrence in 2013 of Costa’s hull and machinery insurance proceeds for the total loss of a ship in excess of its net book value and a gain from a Cunard litigation settlement (“Costa’s excess insurance proceeds and Cunard’s litigation settlement”); $20 million – higher insurance premiums; 44
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$15 million – special expense assessment from the Merchant Navy Officers Pension Fund (“MNOPF”) and $14 million – new market development initiative costs. These increases were partially offset by: $131 million – lower fuel consumption per ALBD; $111 million – lower fuel prices; $65 million – decreases in commissions, transportation and other related expenses driven by lower cruise ticket pricing, partially offset by increases in air transportation costs related to guests who purchased their tickets from us; $34 million – nonrecurrence in 2013 of the 2012 Costa Allegra ship impairment charge; $29 million – nonrecurrence in 2013 of the 2012 Costa Concordia Ship Incident (“2012 Ship Incident”) related expenses and $24 million – various other operating expenses, net. Selling and administrative expenses increased $159 million, or 9.2%, to $1.9 billion in 2013 from $1.7 billion in 2012. Depreciation and amortization expenses increased $61 million, or 4.0%, to $1.6 billion in 2013 from $1.5 billion in 2012.
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