Carnival is cutting its Australian fleet in half from 2028, in a fresh blow to a cruise sector already losing ships as operators grapple with rising costs and uncertainty over the rules that will apply in coming years.
The cruise giant confirmed Carnival Luminosa and Carnival Adventure will both leave the local market in March 2028, leaving Carnival Splendor and Carnival Encounter as its only ships sailing year-round from Australia.
Carnival Luminosa, which has operated seasonally from Brisbane since cruising resumed in 2022, will make its final local voyage from Sydney on March 15, 2028.
Carnival Adventure will then depart Sydney on March 20 in 2028 and, despite earlier plans, will not return to Australia.
The decision means Carnival will halve its regular Australian presence, with the company pointing to regulatory uncertainty and high operating costs as key reasons behind the move.
In a statement released on Thursday, the company noted that cruise deployments are planned years in advance and depend on long-term certainty and operating conditions that can compete with other global markets.
The federal government recently extended the cruise industry’s exemption from the Coastal Trading Act until December 2028, but Carnival indicated that had not removed broader concerns about what happens beyond that date.
The exemption allows international cruise ships to operate without being subject to the same industrial relations laws and licensing fees as local operators.
Carnival Cruise Line country manager Peter Little said the extension is “a welcome but interim step” while long-term operating framework for the Australian cruise sector is developed over the next two years.
“As the only cruise line with ships dedicated year-round to Australia, Carnival has greater exposure to changes in local market and operating conditions than cruise lines with a seasonal or more limited presence,” Mr Little said.
Mr Little also indicated the company would remain involved in discussions with Canberra as new rules are considered.
Carnival’s retreat adds to a growing list of cruise operators stepping back from Australia.
Cunard, Virgin Voyages and Disney have all pulled away from the market, while the P & O Cruises brand is due to be retired in March 2025.