Financial Times FT.com

Carnival cruises up the creek as consumer demand wanes

By Dominic Picarda

Published: July 12 2008 03:00 | Last updated: July 12 2008 03:00

In Homer's Odyssey, the protagonist has to steer a perilous course between a whirlpool and a sea monster.

Carnival is currently navigating through a modern day recreation of these tribulations. The cruise operator faces weaker demand for its cruises on the one side and record fuel costs on the other. In this situation, its profits are in clear danger of suffering that sinking feeling, already reflected in analysts' forecasts for 2008.

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