Higher prices and onboard spending boost Carnival Corporation
Second-quarter results show return to profit and record revenues
Astrong
Carnival Corporation & plc has swung back into profit and reported record second-quarter revenues of $5.8 billion as demand for cruising remains strong.
For the three months ended May 31, 2024, net income was $92 million, an increase of nearly $500 million compared to 2023. Adjusted net income was $134 million, driven by higher ticket prices, higher onboard spending and the timing of expenses between quarters.
The parent of brands such as Carnival Cruise Line, Cunard, Holland America Line and P&O Cruises said its cumulative booked position for the remainder of 2024 continues to be the best on record in both price and occupancy.
Furthermore, the cumulative booked position for 2025 is even higher than 2024, it added.
Total customer deposits reached an all-time high of $8.3 billion, surpassing the previous record by $1.1 billion.
Josh Weinstein, chief executive, said: “We have made incredible strides in improving our commercial operations, strategically reallocating our portfolio composition and formulating growth plans, while strengthening even further our global team, the best in the business.
“Off the back of that effort, we closed yet another quarter delivering records, this time across revenues, operating income, customer deposits and booking levels, exceeding our guidance on every measure.
“Based on continued strong demand trends, we are taking up our expectations for the year with net yields now forecasted to top 10% and propelling us towards double-digit returns on invested capital.”
He added: “We are very pleased with the continued acceleration of demand for 2025 and beyond, which builds upon the fantastic achievements in 2024 thus far.
“This positive trajectory is a testament to the successful execution of our demand generation efforts and the delivery of exceptional vacation experiences once onboard.”
The results statement said: “The company continues to experience strong bookings momentum driven by record booking volumes for 2025 sailings.
“With less inventory remaining for sale for the remainder of 2024, the company achieved considerably higher prices on bookings taken during the second quarter compared to the prior year.”
On a conference call after the results were announced, Weinstein added: “We couldn’t do it without the support from our amazing travel agent partners.”
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