SHARES in Carnival plunged by 20 per cent this morning as trading resumed following the fatal grounding of the Costa Concordia.

Carnival, which owns Costa Cruises, said the loss of the stricken cruise liner would wipe up to £62 million from its profits this year.

Shares in the company, which has its UK headquarters in Southampton, tumbled in London trading this morning by as much as 23 per cent. Carnival has dual listings on the London and New York stock exchanges.

Carnival said the grounded vessel would be out of service until at the least the end of its financial year to November 30, costing it between 85 million and 95 million US dollars this year. It said it was too early to calculate other costs.

However, Carnival said it was insured to the tune of 40 million US dollars (£26.1 million) for the vessel.

Micky Arison, chairman and chief executive of Carnival, said: "At this time, our priority is the safety of our passengers and crew.

"We are deeply saddened by this tragic event and our hearts go out to everyone affected by the grounding of the Costa Concordia and especially to the families and loved ones of those who lost their lives. They will remain in our thoughts and prayers."

The fall in Carnival shares wiped nearly £1 billion from its market value.

Its stock had already fallen about 30 per cent over the previous year as the weak economic climate hit demand for cruises.

Analysts have suggested that the shipwreck could reduce the company's profits by a tenth this year, although they have said the longer-term losses will be harder to calculate.

The timing of the fatal sinking could not be worse for the business, as January to March is the so-called wave season, accounting for about a third of all bookings.

Carnival Corporation & plc is the world's largest cruise ship operator. It owns 11 brands, including P&O, Cunard and Princess Cruises.

The dual-listed company has headquarters in Southampton in the UK and Miami in the US.

Carnival plc, the British side of the business, is concerned with UK operations, but does have responsibility for Costa Cruises, Carnival Cruises and Holland America Line.