Carnival, the world’s largest cruise-ship operator, posted a $139 million (€106 million) first-quarter loss, after the grounding of its Costa Concordia off Italy killed at least 25 persons. It also significantly cut its fiscal year profit and revenue forecast.

The company said its North American brands have taken a smaller hit than European liners and predicted a broader companywide recovery in the next year to two.

“As time passes, we are confident that our business will improve,” Carnival operations chief Howard Frank told analysts on a conference call.It added that booking volumes are improving, excluding Costa, which accounts for 14 of Carnival’s 99 ships.

The disaster is taking a large toll on Carnival’s short-term profits. Carnival expects to earn $1.40 to $1.70 per share in the fiscal year. At its midpoint, this range is $1.15 per share lower than the forecast the company gave in December, largely because of a hit to the Costa brand’s earnings. Carnival said the Costa Concordia was deemed a “total loss”. – (Reuters)