Carnival Corp raises annual profit forecast again on steady cruise demand

By Thomson Reuters Jun 25, 2024 | 8:26 AM

(Reuters) – Carnival Corp raised its annual profit forecast on Tuesday for the second time this year, banking on higher prices for its itineraries and sustained demand for cruise holidays to destinations such as the Caribbean and Alaska.

The company’s U.S.-listed shares, which have fallen more than 11% this year, rose 4.3% to $17.05 in premarket trading.

2024 has been a record year for cruise operators, with booking volumes hitting an all-time high as travelers continue to seek out newer experiences and fun activities at affordable rates, giving companies enough room to hike ticket prices to offset elevated operating costs.

“The company continues to experience strong bookings momentum driven by record booking volumes for 2025 sailings,” Carnival CEO Josh Weinstein said.

“While still early, the cumulative advanced booked position for full year 2025 is even higher than 2024 in both price (in constant currency) and occupancy.”

Carnival now expects 2024 adjusted profit per share of about $1.18, compared with its earlier forecast of 98 cents per share.

The company also forecast an adjusted profit of $1.15 per share for the third quarter. Analysts had expected a profit of $1.10 per share, according to LSEG data.

(Reporting by Granth Vanaik in Bengaluru; Editing by Shounak Dasgupta)