Five Ships to Leave Costa Fleet by May 2021

Five Ships to Leave Costa Fleet by May 2021

Working to reduce capacity growth in Southern Europe, five ships will leave the Costa Cruises fleet by May 2021, according to Arnold Donald, CEO of Carnival Corporation, speaking on the company's third-quarter earnings call on Thursday, Sept. 26.

Donald said that two Europe-based ships will leave the Costa fleet in 2020, and he added that two ships will leave the Costa fleet in Asia in 2020.

In addition, he confirmed the Costa Mediterranea will leave the fleet in May 2021. 

The ships will be replaced with more efficient capacity in the new Costa Smeralda, Donald underscored. 

Carnival's CEO did not mention what other ships would leave the fleet, but based on other Carnival Corp. vessel transfers, these would most likely be the line's older and less efficient vessels. 

"Some are being sent to China; some are being sent to other markets where we have strength," Donald said, noting some would also leave the fleet. "When we sell them, we don't sell them into competing markets."

The Atlantica and Mediterranea are expected to transfer to Carnival's joint venture in China with China State Shipbuilding Corporation, but the timeline is behind previously announced goals. 

Recent Carnival Corporation secondhand vessel transactions include not only Costa vessels, but the P&O Oriana, which was sold to Chinese owners and just transferred to the new Astro Ocean brand.

In addition, the Pacific Jewel was sold to Jalesh Cruises, the Pacific Eden moved to Cruise & Maritime Voyages, and the Prinsendam is now the Amera for Phoenix Reisen.

Carnival Corp: On Track to Slowly Remove Older Ships

Adona (Fathom) is set to join Azamara Cruise.

Carnival Corporation remains on pace to remove one to two older, less efficient ships from its fleet on an annual basis following two recent transactions. 

Carnival announced earlier in the week the P&O Adonia has been sold to Azamara for a March 2018 delivery. The Adonia joins the neoClassica, which will leave the Costa fleet around the same time.

Newer ships are not only generally larger, but burn less fuel and generate higher ticket pricing and onboard revenue. 

The 2001-built Adonia is one of the smallest ships in the Carnival fleet, at 684 passengers. The neoClassica is also on the smaller side, with capacity for 1,308 passengers, having been built in 1991.

The sales are part of the company’s broader corporate strategy to remove older, less efficient ships, while moderating capacity growth in line with demand, according to executives. 

“We remain on track with our strategically enhancement program as we continue to deliver more efficient vessels, while replacing less efficient ones over time,” said Arnold Donald, president and CEO of Carnival Corporation, on the company’s third quarter earnings call.

Last year followed a similar beat as the 1988-built Pacific Pearl left the P&O Australia fleet for a new home with Cruise & Maritime Voyages. Her capacity was replaced by the much newer 1997-built Dawn Princess, which was transferred to P&O Australia and renamed the Pacific Explorer.

“As demonstrated by our April sale of Pacific Pearl, as well as our recently announced sale of Costa neoClassica, expected to leave the fleet next April, and our P&O Adonia, expected to leave the fleet next March. We remain on pace with our historical average of removing one to two ships per year,” Donald added.

In 2014, the company moved a number of ships off its books as the Voyager, which was operating for Costa was sold to Bohai Ferry.The Celebration went to Bahamas Paradise after her stint with Iberocruceros. The Grand Holiday, another Ibero ship, was sold to Cruise & Maritime Voyages, and finally, the Ocean Princess was sold to Oceania, a deal in which Carnival even provided financing.