Carnival blames surcharge on increasing fuel costs

Carnival Corp., the world's largest cruise operator, said it will apply a fuel surcharge of $5 a person a day for its North American brands due to continuing rising fuel prices.

Carnival Chairman and Chief Executive Micky Arison said in a statement that rising fuel prices are affecting the company's operating costs.

Carnival saw a 140 percent increase in the price it pays for fuel over the last three years, with the cost climbing 50 percent over the past seven months.

The surcharge only applies to the first and second guests in a stateroom and will not exceed $70 a person a trip, the company said. It will be effective on all bookings for voyages departing on or after Feb. 1, 2008 on brands including Carnival Cruise Lines, Costa Cruises, Cunard Line, Holland America Line, Princess Cruises and the Yachts of Seabourn.

For existing reservations, travel agents will receive $10 a booking in administrative compensation for telling their clients about the surcharge and collecting the additional money.

The fuel supplement will result in customers paying about one-third of Carnival's year-over-year fuel cost increases over the first six months of the fiscal year, according to Arison. AP