The cruise company bidding for P&O Princess Cruises has seen its profits drop by nearly 40 per cent.
Carnival says its fourth quarter profits have almost halved compared to a year ago.
It blames lower bookings and cancellations for its cruises following September 11.
Carnival says its net income was $116.3 million for the quarter compared to $193.8 million a year ago.
The cruise-ship company says profits were also reduced in part by one-time charges of $39 million. Its operating income dropped 28.1 per cent to $119.5 million, compared to $166.3 million a year ago.
Revenues were $959.1 million, up from $850.3 million for the same quarter in 2000.
"In light of the significant impact of the September 11 events on the vacation market, the achievement of quarterly net income of more than $116 million with occupancies of 98% is a testament to the strength of our vacation products," said Carnival chairman and chief executive Micky Arison.