(Reuters) – Carnival Corp on Tuesday raised its annual profit forecast for the second time this year, banking on higher prices for its itineraries and sustained demand for cruise vacations to destinations such as the Caribbean and Alaska.
U.S.-listed stocks, which have fallen more than 11% this year, rose 6.5% to $17.45.
2024 has been a banner year for cruise operators, with booking volumes reaching an all-time high as travelers continue to seek new experiences and fun activities at affordable rates, giving companies plenty of room to increase the price tickets to offset high operating costs.
âThe company continues to experience strong booking momentum, driven by record booking volumes for 2025 sailings,â said Carnival CEO Josh Weinstein.
âAlthough it is still early, the cumulative position of advanced bookings for the whole of 2025 is even higher than that of 2024, both in terms of price (in constant currency) and occupancy.â
Carnival’s total customer deposits during the second quarter reached a record high of $8.3 billion, surpassing the previous record of $1.1 billion, the company said.
The cruise line now expects adjusted earnings per share of about $1.18 for 2024, up from 98 cents previously forecast.
The company also expects adjusted earnings of $1.15 per share for the third quarter. Analysts had expected a profit of $1.10, according to LSEG data.
Cruise costs per available lower berth day, or the passenger capacity of a ship while it is sailing and in service, increased 4% during the second quarter.
Adjusted cruise costs in constant currency were better than the company’s own estimates, in part because of the timing of spending, Carnival said.
(Reporting by Granth Vanaik in Bengaluru and Doyinsola Oladipo in New York; editing by Shounak Dasgupta)
