How Is Carnival Cruise Line Doing?

Carnival Corporation plc, the world’s largest cruise company, has announced an order for three new ships for its Carnival Cruise Line brand. Testing is not required for vaccinated or unvaccinated guests, but all guests aged 5 and older are encouraged to take a pre-cruise COVID-19 test within three weeks. Despite the turbulent waves caused by the COVID-19 pandemic, Carnival Corporation has shown signs of progress, with a nearly 50% increase in revenue in fiscal 2023.

The Carnival Freedom fire disrupted a cruise for the second time in less than two years, and the cruise line will welcome the first of the three new vessels in the summer of 2029. Each vessel will have more than 3,000 cabins and a full capacity of nearly 8,000 guests. Carnival operates a portfolio of cruise-line brands offering year-round and seasonal cruises globally. The company was founded as Carnival Cruise Line in 1972 but changed its name to Carnival Cruise Line in 2024.

Carnival’s unprecedented rise to the world’s largest cruise operator can be attributed to its ability to manage brand autonomy, with each major cruise line offering unique experiences. Vaccines and testing are no longer required for most cruises, and the cruise industry contributed 134 billion to the global economy in 2017, employing more than 5,000 people. Carnival reversed a previous decision due to customer demand, which may pressure Royal Caribbean to do the same.

Is Carnival Cruise Lines a good investment?

Carnival has a consensus rating of Strong Buy which is based on 14 buy ratings, 2 hold ratings and 1 sell ratings.

Which cruise line makes the most profit?

What are the leading cruise companies worldwide?. A handful of U.S.-based players dominate today’s global cruise market, namely Carnival Corporation, Royal Caribbean Cruises, and Norwegian Cruise Line. Although Royal Caribbean Cruises operates some of the largest cruise ships worldwide, the brand’s main competitor Carnival Corporation remains the leading global cruise company based on revenue. In 2023, Carnival Corporation & plc’s global revenue reached nearly 22 billion U.S. dollars, the highest figure reported by the cruise line to date. Meanwhile, Royal Caribbean Cruises’ revenue worldwide also peaked in 2023, being around 27 percent higher than in 2019. Thus, although the financial losses caused by the pandemic and the costs from investments in new ships are not to be overlooked, the passenger and revenue figures are good cause for optimism, as the cruise market is smooth sailing again.

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• Premium Statistic Travel and tourism revenue worldwide 2020-2029, by segment
• Premium Statistic Revenue of the cruises industry worldwide 2020-2029
• Premium Statistic Revenue growth of cruises worldwide 2020-2029
• Premium Statistic Countries with the highest revenue in the cruise industry worldwide 2025-2029
• Premium Statistic Share of sales channels of the global cruise industry revenue 2019-2029

What is the financial outlook for Carnival Cruise Line?

2024 Outlook For the full year 2024, the company expects: Net yields (in constant currency) up approximately 9.5 percent compared to 2023, over a point better than December guidance, based on continued strength in demand and with occupancy at historical levels.

, /PRNewswire/ Carnival Corporation & plc (NYSE/LSE: CCL;NYSE: CUK) announced financial results for the first quarter 2024 and provided an outlook for the full year and second quarter 2024.

• Record first quarter revenues of $5.4 billion with record net yields (in constant currency) and record net per diems (in constant currency) both significantly exceeding 2023 levels (see “Non-GAAP Financial Measures” below).
• The company improved its first quarter bottom line by nearly $500 million compared to 2023 and adjusted net loss was better than December guidance, with continued strength in demand driving ticket prices higher (see “Non-GAAP Financial Measures” below).
• During the first quarter, booking volumes hit an all-time high with prices considerably higher year over year.
• Following a successful wave season (peak booking period), the company raised its full year 2024 net yield guidance (in constant currency) by over a point to approximately 9.5 percent compared to 2023 based on continued strength in demand and also improved its adjusted cruise costs excluding fuel guidance (in constant currency) by $35 million as compared to its December guidance.
• Total customer deposits reached a first quarter record of $7.0 billion, surpassing the previous first quarter record by $1.3 billion.
• The company redeemed its remaining second lien debt (9.875% second-priority secured notes), upsized its forward starting revolving facility by $400 million and extended its availability by two years.
• The company ordered its first newbuilds in five years, the tenth and eleventh in its highly successful excel-class, scheduled to be delivered to Carnival Cruise Line in 2027 and 2028.

“This has been a fantastic start to the year. We delivered another strong quarter that outperformed guidance on every measure, while concluding a monumental wave season that achieved all-time high booking volumes at considerably higher prices,” commented Carnival Corporation & plc’s Chief Executive Officer Josh Weinstein.

Is Carnival Cruise Line in debt?

Total debt on the balance sheet as of May 2024 : $30.65 B. According to Carnival Corporation’s latest financial reports the company’s total debt is $30.65 B.A company’s total debt is the sum of all current and non-current debts.

Carnival Corporation – Total debt on balance sheet (from 2001 to 2024)

How is Carnival Cruise Line doing financially?

Carnival lifted its 2024 adjusted net income guidance by $275 million to $1.55 billion, compared with FactSet’s call for $1.37 billion. The company forecast third quarter adjusted net income to increase 35% to $1.58 billion, ahead of Wall Street’s expectation of $1.54 billion.

Why is Carnival so cheap?

To encourage onboard spending, cruise lines may offer lower upfront fares, knowing that passengers will likely spend more once they’re on the ship. Furthermore, some Carnival cruise itineraries are shorter and visit destinations that are closer to their homeports, which can result in lower fuel and operating costs.

Which cruise line has the most debt?

Total debt for similar companies or competitorsCompanyTotal debtdiff.Carnival Corporation CCL$30.65 B122.94%Royal Caribbean RCL$21.18 B54.08%SEACOR Holdings CKHN/AN/A.

Why is Carnival Cruise Line stock crashing?

Pricing May Be an Issue. Carnival, Norwegian Cruise Line Holdings, and Royal Caribbean Group stocks were all falling Friday after an analyst wrote that the cruise lines are losing some pricing power.

Is Carnival doing well?

Smooth sailing. Carnival’s business is giving its shareholders plenty of reasons to be optimistic. In fiscal 2023, which ended Nov. 30, the company reported revenue of $21.6 billion, a record figure that was up 77% year over year. This number exceeded the previous record, which came in fiscal 2019.

The momentum carried over into the first quarter of 2024. During that 12-week stretch, the company hit a first-quarter record for sales. Key to this strong momentum is, without a surprise, robust demand from consumers.

“This has been a fantastic start to the year. We delivered another strong quarter that outperformed guidance on every measure, while concluding a monumental wave season that achieved all-time high booking volumes at considerably higher prices,” CEO Josh Weinstein highlighted in the latest earnings press release.

Why is Carnival losing money?

Carnival’s recovery. Admittedly, Carnival stock had looked uninvestable for years. The company earned little revenue for several quarters. Even when cruises resumed in mid-2021, it took months for the company to rebuild the customer base to the point where all its ships could sail again.

As a result, Carnival endured years of losses. In fiscal 2022, well after it had returned to the seas, it lost more than $6 billion, which was not much of an improvement from the $9.5 billion loss in fiscal 2021, when it did not sail for half of the year. Also, in fiscal 2023 (ended Nov. 30, 2023), the company still lost $74 million.

But despite a $48 million loss in fiscal Q4, its nearly $1.1 billion in net income in fiscal Q3 (ended Aug. 31, 2023) showed it can again be a profitable company. With that, Carnival has moved ahead of its three-year financial targets, and analysts forecast a return to profitability in fiscal 2024.

Moreover, bookings are at record highs. Also, by the end of fiscal Q4, it had already booked two-thirds of its cabins for fiscal 2024. And since the company has booked those cabins at considerably higher prices, this should boost its financials. Further improvement should come as it plans to increase its capacity by more than 5% in fiscal 2024.

Why is Carnival dropping?

But this is a business that is recovering nicely from the worst days of the pandemic. At one point, Carnival was forced to halt its operations temporarily to prevent the spread of COVID-19. Revenue took a huge hit, dropping 91% between fiscal 2019 and fiscal 2021.

Now that the company has bounced back and looks to be on solid footing, I’m sure it’s starting to catch the attention of investors. Shares still trade at a reasonable forward P/E of 14.

Rough waters. It’s easy to say this with the benefit of hindsight, but I don’t necessarily think it’s shocking to see Carnival putting up such strong numbers right now. Unless you were convinced that demand for cruise travel would permanently fall off a cliff, I bet you expected that this business would experience a reversion to the mean.

What is the financial status of Carnival cruise lines?

Total AssetsMay 2024Total Debt31.89 BTotal Liabilities42.24 BTotal Shareholder’s Equity6.88 BBook Value Per Share5.44.