by Sarah Kuta
Last updated: 10:10 AM ET, Tue June 4, 2024
P&O Cruises Australia is shutting down in March 2025.
The long-standing cruise line, which is owned by Carnival Corporation & plc, will be absorbed into Carnival Cruise Line early next year, the company announced this week. Starting next spring, the ships Pacific Encounter and Pacific Adventure will begin sailing under the Carnival brand; Pacific Explorer, meanwhile, will “exit” the fleet, according to the announcement.
The company is shuttering P&O Cruises Australia in a bid to increase the capacity of Carnival Cruise Line, which will return the highest profits of the entire Carnival Corporation & plc portfolio.
P&O Cruises in the United Kingdom remains unchanged.
When the integration is complete, Carnival Cruise Line will make up 35 percent of the company’s total global capacity. Carnival is also expected to be responsible for the majority of the company’s growth between 2019 and 2028.
Starting next year, Carnival Cruise Line will offer Carnival Splendor, Carnival Luminosa and the rebranded Encounter and Adventure in the South Pacific.
"Despite increasing Carnival Cruise Line's capacity by almost 25% since 2019 including transferring three ships from Costa Cruises, guest demand remains incredibly strong so we're leveraging our scale in an even more meaningful way by absorbing an entire brand into the world's most popular cruise line," says Josh Weinstein, chief executive officer of Carnival Corporation & plc.
The move will also create operational efficiencies in the South Pacific.
“Given the strategic reality of the South Pacific's small population and significantly higher operating and regulatory costs, we're adjusting our approach to give us the efficiencies we need to continue delivering an incredible cruise experience year-round to our guests in the region,” says Weinstein.
Even with the absorption of P&O Cruises Australia into Carnival, the company expects to continue to be the largest cruise operator in Australia, with 19 ships visiting 78 destinations—which represents nearly 60 percent of the market for the region.
"We look forward to building on the history and heritage of P&O Cruises Australia by bringing some of our innovations to more cruise guests in the region," says Christine Duffy, president of Carnival Cruise Line. "While we plan to make some technology upgrades and other small changes to the two P&O Cruises Australia ships, they will continue to be geared to the unique Australian market with a familiar feel and much of the same experiences for P&O Cruises Australia guests.”
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