Carnival losses narrow as demand returns

The cruise company is eating into its debt and returning its bottom line to health after years of pandemic-affected takings.

CARNIVAL Corporation has posted a smaller-than-expected loss of US$48 million for the fourth quarter, compared to the prior corresponding period’s loss of US$1.6 billion.

The company also beat its revenue estimates thanks to steady cruise demand, and fourth quarter incomes of US$5.4 billion.

Carnival’s full-year incomes hit an all-time high of US$21.6 billion, as the company enters the new year with its best booked position on record for both price and occupancy.

The company’s shares jumped 7% after it estimated its earnings for the next quarter would more than double from a year earlier, thanks to strength in the market, which is driving Carnival’s fare prices higher.

Carnival also noted booking volumes for the two weeks around Black Fri and Cyber Mon hit an all-time high.

“We entered the year with the best booked position we have ever seen, and now have nearly two-thirds of our occupancy already on the books for 2024, at considerably higher prices,” Chief Executive Officer Josh Weinstein said.

“For our peak summer period, all major products are better booked at higher prices benefiting from improving trends in both occupancy and price during the fourth quarter.

“We continue to experience strong bookings momentum across the board.”

Carnival expects net yields in the first quarter to be up 16.5% year-on-year and is forecasting a net income for the 2024 fiscal year of US$1.2 billion.

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