Carnival shares rose 10.8% after the company reported Q3 net income about $2 billion, $100 million above its guidance, with better-than-expected yields and costs. The call also pointed to record pricing and occupancy for 2027 bookings, though management said the spring booking disruption extended into early 2027 before rebounding.
- Q3 yields increased nearly 2.5%, more than 1 percentage point better than expected; stronger closing demand also led Carnival to raise its fourth-quarter yield expectations.
- Cruise costs excluding fuel came in 1 percentage point better than guidance. Fuel consumption was 3 points better than expected, and management said operational improvements since June had offset the impact of higher expected fuel prices.
- Carnival is half booked for 2027, with occupancy and pricing at record levels; 2028 bookings are also ahead year over year in both occupancy and price.
- Customer deposits reached a third-quarter record of approximately $7.6 billion, up about 7% despite flat capacity growth over the next 12 months.
- Celebration Key welcomed almost 2.5 million guests in its first year; Carnival expects approximately 3.5 million guests next year, with 31 ships calling versus 26 this year.
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