Carnival Corporation reports record second quarter results

Carnival Corporation & plc CEO Josh Weinstein: ""Based on continued strong demand trends, we are taking up our expectations for the year."

Shares in Carnival Corporation & plc [NYSE/LSE: CCL; NYSE: CUK] were up by more than 8% today as the cruise giant reported record second quarter revenues and booking levels. The results come after a J.P. Morgan research report, released earlier this month, saw a lot of good things trending for the cruise industry. These including that, while Baby Boomers once formed cruising’s core consumer base, an increasing number of younger travelers and first-time passengers are now coming on board and that cruise operators are investing in new hardware, including mega-ships and private destinations, to acquire new customers.

“An important point underscoring our more constructive view of the cruise industry post-pandemic is market share gains from the larger $1.9 trillion global vacation market and accelerated new-to-cruise customer acquisition,” said Matt Boss, head of leisure and retailing (department stores & specialty softlines) at J.P. Morgan. “Demand remains robust, with not a single historical lead indicator in the business, notably booking curve and on-board spend, signaling any softening.”

The latest results from Carnival Corporation would seem to bear all this out. Highlights of its second quarter results included:

• Second quarter net income improved by nearly $500 million compared to 2023 and adjusted net income outperformed March guidance by nearly $170 million
• Record second quarter operating income of $560 million, nearly five times 2023 levels, on record second quarter revenues of $5.8 billion.
• Raised full year 2024 net yield guidance (in constant currency) to approximately 10.25 percent on continued strong demand and raised full year adjusted net income guidance by approximately $275 million.
• Cumulative booked position for the remainder of 2024 continues to be the best on record in both price (in constant currency) and occupancy.
• Cumulative booked position for full year 2025 is even higher than 2024 in both price (in constant currency) and occupancy.
• Total customer deposits reached an all-time high of $8.3 billion, surpassing the previous record by $1.1 billion.

“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,” said Carnival Corporation CEO Josh Weinstein. “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.

“We are very pleased with the continued acceleration of demand for 2025 and beyond, which builds upon the fantastic achievements in 2024 thus far,” Wenstein noted. “This positive trajectory is a testament to the successful execution of our demand generation efforts and the delivery of exceptional vacation experiences once onboard.”

“Based on continued strong demand trends, we are taking up our expectations for the year with net yields now forecasted to top ten percent and propelling us towards double-digit returns on invested capital,” he said.

The company says that it continues to experience strong bookings momentum driven by record booking volumes for 2025 sailings. 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.

With less inventory remaining for sale for the remainder of 2024, Carnival Corporation reported that it achieved considerably higher prices (in constant currency) on bookings taken during the second quarter compared to the prior year, which is aligned with the company’s yield management strategy. In fact, pricing for both its North America and Australia ) and Europe segments is running ahead of the prior year for each of the third and fourth quarters of 2024.

• All the numbers and the company’s 2024 outlook HERE