Carnival posts $1.85 billion quarterly profit as demand remains strong

MIAMI - Carnival Corporation & plc reported a third-quarter profit of $1.85 billion on Monday, up from $1.74 billion in the same period last year, as the cruise operator continues to benefit from robust demand and higher ticket prices despite slightly lower capacity.

Revenue for the quarter ended August 31 rose to $8.15 billion, a 3.2% increase from $7.90 billion a year earlier. Passenger ticket revenue, which accounts for 67% of total revenue, increased by 3.6% to $5.43 billion, driven primarily by higher ticket prices.

"Higher ticket prices driven by continued strength in demand" contributed $215 million to the revenue increase, according to the company’s quarterly report. This was partially offset by a 2.5% decrease in available lower berth days (ALBDs), a standard measure of passenger capacity.

The world’s largest cruise company maintained strong occupancy levels at 112%, unchanged from the same period last year. Occupancy exceeding 100% indicates that on average more than two passengers occupied some cabins.

Carnival’s operating income increased by $94 million to $2.27 billion, while interest expenses decreased by $114 million to $317 million, reflecting the company’s ongoing debt reduction efforts. The company recognized $111 million in debt extinguishment and modification costs during the quarter.

Fuel costs decreased due to both lower prices and reduced consumption per ALBD. The company reported fuel cost per metric ton consumed at $607, down from $670 in the prior-year quarter.

Looking ahead, Carnival noted it had $6.3 billion in liquidity as of August 31, including $1.8 billion in cash and $4.5 billion available under its revolving credit facility. The company also has $8.7 billion in undrawn export credit facilities to fund ship deliveries planned through 2033.

The financial results were disclosed in Carnival’s quarterly report filed with the U.S. Securities and Exchange Commission, based on the company’s press release statement.

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