P&O Princess Cruises (POC) has reported net income of $174.9 million, or $1.01 per ADS, on revenues of $806.0 million for the third quarter ended Sept. 30, 2002, compared to net income of $163.0 million, or $0.94 per ADS, on revenues of $776.0 million for the same period last year.

POC reported that is capacity was up by 12 percent in passenger cruise days with a load factor of 102.0 percent compared to 100.7 percent last year. Net revenue yield was down five percent over last year, most pf which was attributable to Princess Cruises, which was significantly affected by the disruption to bookings from the events of 9/11, according to POC.

The changed mix of POC’s business for 2003 due to the removal of the Diamond Princess is expected to reduce overall net revenue yields by less than 0.5 percent. POC has so far cancelled the Diamond Princess’ cruise programs up until Feb. 28, 2004.

For 2003, POC will market 56 percent of its total capacity in North America, compared to 63.5 percent in 2002. The U.K. and German portions will increase to 25 and 15 percent, respectively, from 22 and 10 percent for 2002. Australia’s share will decline slightly to four percent in 2003 from 4.5 percent in 2002.

In terms of market deployment in North America, Princess will have 24.5 percent of its capacity in the Caribbean in 2003, compared to 31.0 percent in 2002. Twenty percent will be deployed on its so-called “Exotics and others programs” next year, compared to 15 percent this year. Alaska will be the third largest market for Princess with 19.5 percent of its fleet capacity in 2003, compared to 23 percent in 2002. Europe is number four with 17 percent of the capacity, compared to only seven percent this year. The Panama Canal remains steady at 12 percent next year, compared to 11 percent this year. Mexico becomes the big loser with only seven percent of Princess’ capacity next year, compared to 13 percent this year, as the Diamond Princess will not be entering service in 2003.