P&O profits fall following September 11 attacks

Cruise operator P&O Princess today reported a fall in third-quarter profits, after the September 11 attacks on the United States.

The group said pre-tax profits for the three months to September 30 fell to £121m, down from £123m for the same period last year.

One-off charges relating to disruption following the attacks - including increased promotion costs - added up to £8.5m.

P&O added the earnings outlook for next year was uncertain and would be heavily influenced by the political and economic environment from January to March its key booking period.

Peter Ratcliffe, chief executive said: ‘‘We had two weeks when there were significant cancellations and there were bookings less than we were anticipating when the whole of America was shocked and stunned by the events.

He said the firm had been trying to get people back by upping promotional activities, while it had moved operations out of ‘‘sensitive areas such as the Middle East’’.