Surprise: A prominent cruise line is going out of business

Attention, Carnival cruisers: The fleet is about to expand with two new ships after the closure of one of its sister lines.

Carnival Corp., which runs both Carnival Cruise Line and P&O Cruises Australia, will be closing the latter in early 2025, integrating two of its three ships into the Carnival Cruise Line fleet.

This transition offers Carnival enthusiasts two additional ships to choose from in Australia: the 24-year-old, 2,636-passenger Pacific Adventure and the 23-year-old, 2,600-passenger Pacific Encounter. Meanwhile, P&O's third ship, the 28-year-old, 1,998-passenger Pacific Explorer, will be removed from the fleet entirely in February.

P&O Cruises Australia's upcoming voyages will proceed as scheduled; guests with future bookings will be informed if their plans are impacted.

This decision follows Carnival Cruise Line's acquisition of three ships from its Italian counterpart, Costa Cruises, with two of them—Carnival Venezia and Carnival Firenze—marketed as "Fun Italian Style."

"Even after increasing Carnival Cruise Line's capacity by nearly 25% since 2019 with the addition of three ships from Costa Cruises, guest demand continues to soar. We're maximizing our scale more effectively by integrating an entire brand into the most popular cruise line in the world," stated Josh Weinstein, CEO of Carnival Corp., in a statement.

Christine Duffy, President of Carnival Cruise Line, noted in the statement that the ships will largely appeal to Australian audiences, but will include some Carnival features, such as access to the Hub mobile app and the VIFP (Very Important Fun Person) Club loyalty program.

Brandt Montour, a Wall Street analyst from Barclays, commented in a report that he views this as a favorable strategy for Carnival Cruise Line. By consolidating more ships under one brand and reducing the fleet in the Australian market, they can cut maintenance costs for a vessel nearing 30 years of age and slightly lower supply. This should enable higher fare pricing for available cabins—beneficial for the company's profits, but potentially disappointing for travelers hoping for budget-friendly options on their next getaway.

This decision does not impact the U.K.-based cruise line P&O Cruises, which operates independently under the Carnival Corp. umbrella and will continue its scheduled operations.

Considering a Carnival cruise? Begin with these articles:

• Your comprehensive guide to Carnival Cruise Line ships and routes
• 43 essential Carnival Cruise Line tips and tricks for an unforgettable vacation at sea
• The best Carnival cruise ships: Choose the right one for your travel style
• Carnival cruise packing checklist: Essentials for a Fun Ship adventure
• The top 5 cabin locations on any cruise ship
• The 8 least desirable cabin locations on any cruise ship
• A brief overview of the most popular cruise lines
• 21 tips to ensure a seamless cruising experience