Carnival Corp Forecasts Strong Bookings for 2025

(CNBC) – Cruise operator Carnival (NYSE: CCL) Corp is anticipating robust bookings for 2025 ahead of the busy summer season, as Americans show a willingness to spend on experiences, even with rising ticket prices. This positive outlook resulted in a 3% increase in the company's shares on Friday.

The strong demand for cruise vacations enabled Carnival to achieve better-than-expected profits and sales for the fourth quarter. However, the company projected annual profits below estimates due to increasing input costs and elevated advertising expenses.

Adjusted cruise costs, excluding fuel, rose by 7.4% in 2023, which was an improvement over the firm’s previous projections of about 8%, made in September.

"2025 is shaping up to be another banner year, with yield growth expected to far outpace historical growth rates and again exceed unit cost growth," stated CEO Josh Weinstein.

On a constant currency basis, Carnival's advanced bookings for next year reached an all-time high, with occupancy and pricing exceeding those of 2024 across all four quarters of 2025.

The Miami-based company reported quarterly revenue of $5.94 billion, slightly above the analysts' estimates of $5.93 billion, according to data from LSEG. Its adjusted profit for the quarter stood at 14 cents per share, surpassing the estimated 8 cents.

Carnival intends to launch more significant promotions leading up to the deal-intensive wave season, which begins after the winter holidays and runs until the end of March.

However, the increase in promotional expenses and maintenance costs, attributed to more extended dry dock periods, led the company to project an annual profit of $1.70 per share, below the estimated $1.74.