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MIAMI - Carnival Corporation (LON:CCL) & plc, the world’s largest cruise operator, reported a surge in earnings for the first quarter of 2025, buoyed by robust demand for travel and higher ticket prices. The company, which operates several leading cruise lines including Carnival (NYSE:CCL) Cruise Line and Princess Cruises, saw a significant rise in both passenger ticket revenues and onboard spending.
For the three months ending February 28, 2025, Carnival’s passenger ticket revenues climbed 6% to $3.8 billion, compared to $3.6 billion in the same period last year. The increase was attributed to stronger ticket pricing and a 2.5% rise in available lower berth days (ALBDs), a measure of capacity. Onboard and other revenues also grew by 11% to nearly $2 billion, driven by increased guest spending.
The cruise giant’s North America segment led the growth, with a 5.7% increase in capacity following the introduction of new ships and the transfer of a vessel from Costa Cruises. This segment’s operating income soared to $516 million, up from $272 million in the prior year. Europe’s segment also experienced growth, with operating income rising to $140 million, despite a 2.9% reduction in capacity due to ship transfers.
Overall, Carnival’s operating income for the quarter reached $543 million, a significant improvement from $276 million in the previous year. The company cited higher ticket prices and occupancy rates, combined with cost management efforts, as key factors in the improved performance.
Nonoperating expenses, including interest expense, decreased by 20% to $377 million due to lower debt levels and average interest rates. However, Carnival reported $252 million in debt extinguishment and modification costs, reflecting transactions aimed at extending maturity dates and reducing interest expense.
Carnival ended the quarter with $3.8 billion in liquidity, including cash and cash equivalents and available borrowings under a multi-currency revolving credit facility. The company plans to use this liquidity, along with future cash flows, to service debt and fund ongoing operations, including capital expenditures not covered by export credit facilities.
The results highlight the travel industry’s ongoing recovery from the pandemic and Carnival’s strategic efforts to capitalize on the resurgence in demand. The company’s focus on expanding capacity and enhancing the guest experience, coupled with disciplined cost management, has positioned it well for continued growth in the competitive cruise market.
This article is based on a press release statement from Carnival Corporation & plc.
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