Major US Cruise Company Puts 90-Year-Old Australian Cruise Brand on Hold

Florida-based Carnival Corporation has surprisingly announced the discontinuation of a 90-year-old Australian cruise brand, P&O Australia, citing high regulatory costs that have rendered the business unsustainable.

The Pacific Explorer vessel, part of the P&O Australia brand, owned by parent company Carnival, will cease its operations by the end of the upcoming summer.

Additionally, the Pacific Adventure and Pacific Encounter vessels will be integrated into their sister line, Carnival Cruises.

P&O announced the cessation of operations in early March 2025.

The company stated, “After the transition next year, the Pacific Encounter and Pacific Adventure ships will sail under the Carnival Cruise Line brand, while the Pacific Explorer will exit the fleet at that time.”

P&O expressed immense pride in the 90-year heritage of P&O Cruises Australia and transferred this legacy to Carnival Cruise Line to ensure the continuation of onboard experiences and itineraries.

Weak Profit Margins

Carnival CEO Josh Weinstein reiterated the company’s commitment to Australia and the South Pacific despite dry-docking the Pacific Explorer. Carnival will maintain four year-round Carnival Cruise-branded ships in the region, with three based in Sydney and one in Brisbane.

Carnival’s entire fleet will hold a near 60% market share in the region even with the shelving of P&O. New vessels are on order, and the Carnival fleet recently welcomed ships from the Costa brand.

Mr. Weinstein attributed the decision to shelve P&O to weak economic conditions in the South Pacific, necessitating adjustments for operational efficiencies to continue delivering exceptional cruise experiences in the region.

President of Carnival Cruise Line Christine Duffy assured customers a seamless transition to the Carnival brand with familiar experiences onboard and upcoming technology upgrades.

The Company’s Legacy

Affected ship staff will be redeployed, though some P&O head office employees in Sydney may face redundancy. Acting P&O Cruises Australia and Carnival Australia chief Peter Little will take on the role of country manager to oversee local operations.

The company expressed regret for the necessary change and assured travelers with bookings after March 2 of refunding their deposits or offering cruise credit for future trips.

Originally founded in 1837 in Britain as the Peninsular & Oriental Steam Navigation Company, P&O Cruises expanded into Australia in 1932, becoming one of the world’s leading cruise lines.