CARNIVAL PROFIT SAILS AHEAD 12%

Carnival Corp., the world’s largest cruise operator, said third-quarter profit rose 12% as passengers spent more for tickets and on-board gourmet restaurants and spas. Net income beat analysts’ estimates, increasing to US$1.15-billion, or US$1.36 a share, from US$1.03-billion (US$1.22) a year earlier. Revenue in the period ended Aug. 31 climbed 11% to US$3.61-billion, the Miami-based company said yesterday. Revenue per available berth jumped 6.2% after Carnival added restaurants, gambling and spa services not included in the ticket price. Strong demand enabled the company to raise prices by as much as 16% for some cruises, analysts said. Soaring fuel costs and Hurricane Katrina, which led Carnival to cancel and shorten cruises and charter ships for the relief effort, will hurt fourth-quarter profit. New York-based CIBC World Markets analyst David Katz rates the shares “sector outperform,” saying “increases in cruise demand are exceeding supply and that Carnival will continue to benefit from rate improvements.”