Carnivalbanked $66m in the three months to the close of November, down from $93m booked12 months ago.

Earningsper share of $0.04 exceeded market expectations for a breakeven result for theperiod.

Arnold Donald, chief executive of the cruiseship owner, said: “Acceleratedprogress in Carnival Cruise Lines' brand recovery had a positive impact onfourth quarter results.

“Asteady stream of innovative product initiatives, the launch of a nationwidemarketing campaign and travel agent outreach programme, as well as anindustry-leading vacation guarantee fuelled the brand's improvement."

Red ink ahead

Carnival says a decrease in dollarrevenue yields in the first quarter, coupled with rising costs will lead to a non-GAAPdiluted loss of between $0.07 and $0.11 per share.

Donald said: "We are catching upon booking volumes and gaining momentum as we enter 2014.

“We believe the compelling value wehave in the marketplace will continue to stimulate strong demand leading to asolid wave period.

“We continue to expect revenue yields toturnpositive in the second half of 2014 compared to the prior year."

He added: "With over 100 ships andmore than 10 million guests we have a scale advantage that cannot be replicatedin this industry.

“We are aggressively seekingopportunities to leverage that scale to drive top line improvement and gaincost efficiencies.”