Cruise operator Carnival Corp. said Chief Executive Micky Arison, who has been in charge since 1979, will be replaced by board member Arnold Donald, as the company continues to struggle with a series of mishaps that have hurt bookings.
The company, whose shares rose 2.8 percent in early trading, said Donald will take over as CEO on July 3. Arison will continue to serve as chairman.
Carnival, which operates the Carnival, Holland America and Costa cruise lines, also reported a second-quarter profit that beat analyst estimates, helped by lower fuel prices.
However, the company said bookings and prices for the rest of the year were lower than last year.