By Doyinsola Oladipo and Savyata Mishra
(Reuters) -Carnival Corp raised its annual profit forecast after beating second-quarter estimates on Tuesday, driven by last-minute bookings and strong onboard spending, sending the company’s shares up 9% in early morning trading.
Economic uncertainty has prompted travelers to seek better value when booking vacations, benefiting cruise operators.
Carnival said that sea-based vacations remain more affordable compared to land-based alternatives, helping the company demonstrate “remarkable resilience amid heightened volatility”.
“Close-in demand and onboard spending levels were incredibly strong for second quarter sailings and our booking curve continues to be the furthest out on record,” CEO Josh Weinstein said in a statement.
The Holland America and Princess cruise operator reported revenue of $6.33 billion for the quarter ended May 31, beating analysts’ estimates of $6.21 billion, according to data compiled by LSEG.
Total customer deposits reached a record $8.5 billion. The company said its cumulative advanced bookings for 2026 is in line with 2025 record levels and at historical high prices in constant currency.
Adjusted net income rose to $470 million, or 35 cents per share, during the quarter, also led by higher ticket prices and the timing of expenses between quarters. Analysts on average had estimated a profit of 24 cents per share.
Bundled packages offering perks like drinks, Wi-Fi, and excursions have encouraged guests to spend more onboard, further boosting revenue for the cruise lines.
Carnival forecast fiscal 2025 adjusted earnings per share of about $1.97, compared with prior expectations of $1.83.
Cruise operators including Carnival Corp and rival Royal Caribbean Group have been expanding their portfolio of private islands as they seek to capture more consumer spending.
Carnival has committed $600 million to develop Celebration Key, an ambitious private resort destination on Grand Bahama featuring water slides, entertainment venues, and dining establishments. The facility debuts in July.
(Reporting by Savyata Mishra in Bengaluru and Doyinsola Oladipo in New York; Editing by Tasim Zahid)
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