Carnival Cruise Line announced it will remove two ships from the Australian market in 2028, cutting its local fleet size by half. Carnival Adventure was slated to sail out of Sydney on March 20, 2028, but will instead begin seasonal operations in North America and not return to Australia. Carnival Luminosa, seasonally based in Brisbane since 2022, will operate its final Australian sailing from Sydney on March 15, 2028.
Carnival Splendor and Carnival Encounter will maintain year-round operations from Sydney and Brisbane respectively. Carnival Splendor continues to sail year-round from Sydney, while Carnival Encounter operates year-round from Brisbane. Carnival Adventure
is a former P&O vessel formerly planned to return to Australia before its redeployment.
The decision to reduce the fleet reflects regulatory uncertainty and high operating costs in the Australian cruise market. Carnival Cruise Line country manager Peter Little said the company has greater exposure to local market and operating condition changes than cruise lines with seasonal presence due to its year-round Australian commitment.
Australia’s federal government extended the cruise industry’s exemption from the Coastal Trading Act until December 2028. This exemption frees foreign-flagged cruise ships from industrial relations laws and licensing fees that apply to local companies. Little confirmed
Carnival will continue collaborating with the government on future operating arrangements in Australia.
Cruise expert Adrian Tassone commented that Carnival’s fleet reduction causes a significant drop in passenger capacity and itinerary options for Australian cruisers. Tassone warned the supply shortfall will likely push cruise fares higher from 2028 onward. He criticized the federal government’s short two-year exemption extension, saying it undermines the local cruise industry and its investors.
Other cruise operators including Disney Cruise Line and Virgin Voyages have exited the Australian market, while Cunard has ended home porting in the country. Carnival remains the only cruise line with a
year-round fleet presence in Australia. The industry faces challenges like Australia’s remote location, high port fees, complex regulations, and limited profitability compared to Mediterranean and Caribbean markets, contributing to a $1 billion yearly loss in expenditure and threatening 22,000 full-time jobs.
