Carnival FY 2Q17 Earnings Call Notes

Arnold Donald

Haven’t seen any impact from any terrorism incidents in Europe

Got it. So first of all, yes, absolutely, we haven’t been able to measure any kind of impact from the various geopolitical issues and events in Europe and that sort of thing. So we haven’t seen any lost momentum. We see strong momentum in the business all the way through, it’s very early to be talking about first-half of next year. But through the first-half of next year, we’re up on occupancy, up on pricing, against a very tough comparison, because obviously a strong year this year, strong year last year, so lot’s of momentum in the business for certain.

Going to be down a little in capacity in China next year

“So we will be down next year in China a little bit on capacity. And again, that’s not only about China, it’s much about opportunities around the world, because our philosophy is, we always want to optimize and what we generate from our ships. So – but I don’t – China long-term it’s going to be a huge market. We’re extremely excited about our partnership with CSFC that has moved along very nicely. We still have lots of work to do with the trade there in China with distribution system. But again, just please keep in mind, the industry is tiny there. I mean, we’re very, very, very small, and these little moves hopefully. Hopefully the fact that there is less capacity next year. We’ll create the opportunity for yield improvement in China hopefully. But you can’t evenguarantee that, because there’s still a B2B business. “