Carnival Corporation Reports 7.5% Revenue Increase to $5.81 Billion, Net Loss Improves

Carnival Corporation & plc reported a revenue increase of 7.5% for the three months ending February 28, 2025, reaching $5.81 billion compared to $5.41 billion in the same period of the previous year. Passenger ticket revenues rose by $216 million, or 6%, to $3.83 billion, driven by higher ticket prices and a 2.5% increase in available lower berth days (ALBDs). Onboard and other revenues also saw an increase of $189 million, or 11%, totaling $1.98 billion, attributed to higher guest spending and increased capacity.

Despite the revenue growth, the company reported a net loss of $78 million for the quarter, an improvement from the $214 million loss recorded in the same period last year. The operating income increased significantly to $543 million, up from $276 million, primarily due to higher revenues and a more favorable cost structure. Operating expenses rose by 1.7% to $3.77 billion, influenced by a 2.5% increase in ALBDs and higher costs associated with increased ticket pricing and guest numbers. However, lower fuel prices and reduced fuel consumption per ALBD helped mitigate some of these costs.

In terms of strategic developments, Carnival has been actively managing its debt portfolio. The company reported $252 million in debt extinguishment and modification costs during the quarter, reflecting ongoing efforts to optimize its capital structure. As of February 28, 2025, Carnival had $3.8 billion in liquidity, including $833 million in cash and cash equivalents, and $2.9 billion available under its multi-currency revolving credit facility. The company also has $7.8 billion in undrawn export credit facilities to support future ship deliveries.

Operationally, Carnival's customer deposits increased to $7.3 billion, up from $6.8 billion at the end of November 2024, indicating strong future revenue potential. The company carried 3.2 million passengers during the quarter, a 6.7% increase from the previous year, with an occupancy rate of 103%. The North America segment, which accounted for the majority of revenues, reported a 7% increase in passenger ticket revenues, while the Europe segment saw a more modest 3.8% increase.

Looking ahead, Carnival Corporation remains cautiously optimistic about its financial outlook, emphasizing the importance of managing operational costs and leveraging its liquidity to navigate potential market challenges. The company is focused on enhancing guest experiences and expanding its fleet, while also addressing the impacts of fluctuating fuel prices and evolving regulatory requirements related to environmental sustainability.