Carnival Corporation announced in a report that in the third quarter of this year, the company's net profit reached $1.9 billion and its revenue reached $8.4 billion. This increase was due to strong demand for cruises and a reduction in operating costs that managed to offset the sharp rise in fuel expenses.
Financial Details and Impact of Fuel Costs
During this period, Carnival Corporation achieved record revenue despite a negative impact of $131 million from rising fuel prices and currency fluctuations. The company's adjusted net profit reached $2.0 billion, and adjusted EBITDA reached $3.0 billion. Additionally, earnings per share were $1.40, and adjusted earnings were $1.43.
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According to Carnival's CEO, Josh Weinstein, the company has achieved new records in revenue and net profit during this period. Demand for cruises is increasing, and stronger cost discipline has led to better results.
Expectations for 2027 and Future Impacts
Carnival Corporation has also forecasted that by 2027, both occupancy and pricing metrics will reach record levels. Booking volumes in this quarter have significantly outpaced last year, and customer deposits have increased by about $500 million to a record $7.6 billion.
However, energy costs remain one of the biggest pressures on this business. Gross margin has decreased by 1.3% compared to last year, primarily due to fuel costs. Meanwhile, cruise costs per available cabin day have also increased by 4.2%.
Carnival Corporation has also pointed to disruptions caused by Middle Eastern conflicts as a continuing cost factor and has taken logistics costs into account in its annual cost forecasts.
Nevertheless, Carnival has projected that operational improvements will add over $150 million to adjusted net profit, which is enough to offset additional costs arising from rising fuel prices. Adjusted annual net profit is expected to reach approximately $3.08 billion.
Ultimately, these strong results have positively impacted Carnival's balance sheet. The company has repurchased about $1.2 billion of its shares this year, with nearly $800 million of that amount occurring since the beginning of the third quarter.
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