World's biggest cruise company to shut down their Aussie brand

The world's biggest cruise company has announced it is shutting down its Australian brand due to "high operating and regulatory costs" in a major shakeup of the Australian cruise industry.

Carnival Corporation says its P&O Cruises Australia brand will cease to exist from March 2025 after 90 years of service. The brand's products will be absorbed into Carnival Cruise Line.

The Pacific Encounter and Pacific Adventures ships will continue to sail but Pacific Explorer will end operations. Job losses are expected.

Carnival Corporation CEO Josh Weinstein described P&O Cruises Australia as a "storied brand with an amazing team".

"However, given the strategic reality of the South Pacific's small population and significantly higher operating and regulatory costs, we're adjusting our approach to give us the efficiencies we need to continue delivering an incredible cruise experience year-round to our guests in the region," he said.

Carnival said current itineraries would be run as usual and that any guests whose future bookings would change would be notified in the coming days.

"We look forward to building on the history and heritage of P&O Cruises Australia by bringing some of our innovations to more cruise guests in the region," Carnival Cruise Line president Christine Duffy said.

"While we plan to make some technology upgrades and other small changes to the two P&O Cruises Australia ships, they will continue to be geared to the unique Australian market with a familiar feel and much of the same experiences for P&O Cruises Australia guests."