Carnival Corp sees Q2 booking volumes ‘nearly double’

Cruise giant Carnival Corporation has reported booking volumes during the second quarter of 2022 were nearly double those during the first quarter of this year.

The world’s largest cruise company said these were its best quarterly booking volumes since the beginning of the pandemic, albeit still below 2019 levels.

In its Q2 update, for the three months to the end of May, the company said it believes this is a “reflection of the previously expected extended wave season”.

Revenue for the quarter was $2.4 billion, compared to $50 billion year-on-year.

The company said the pandemic and its ongoing effects, inflation and higher fuel prices are collectively having a material impact on the company’s business.

“In addition, as is the case with the travel and leisure sector generally, the company is making meaningful progress in resolving the challenges it is experiencing with onboard staffing which have resulted in occupancy constraints on certain voyages,” it added.

The company made a net loss of $1.8 billion for Q2, compared to $2 billion in the same period of 2021.

Cash from operations turned positive in the second quarter of 2022, and revenue increased by nearly 50% compared to first quarter 2022.

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Occupancy in the second quarter of 2022 was 69%, an increase from 54% in the first quarter.

As of June 24, 2022, 91% of the company’s ships are operating cruises. Five of the company’s nine brands now have their entire fleet back, including Carnival Cruise Line.

President and chief executive Arnold Donald said: “We are aggressively, yet thoughtfully, ramping up to full operations with over 90% of the fleet now in service.

“We are driving occupancy higher, while at the same time significantly increasing available capacity, resulting in a nearly 50% sequential improvement in revenue in the second quarter, despite facing constantly changing and far more restrictive protocols than broader society and travel at large.”

The company anticipates a net loss for the third quarter of 2022, and for the full-year 2022, it continues to expect a net loss.

Josh Weinstein, Carnival Corporation chief operations officer, will replace Donald as president and chief executive from August 1. Donald will become vice-chair and a member of the board of directors.

Donald said: “With cash from operations turning positive and the company heading in the right direction, now is the time to transition leadership to the next generation.

“I am confident our positive momentum will continue under Josh’s leadership and I remain confident in the long-term future of our company.”