By Neil J Kanatt (Reuters) -Carnival Corp raised its annual forecast for profit, betting on strong demand as well as ticket pricing for its cruise vacations, even as macroeconomic uncertainties cast a shadow on consumer spending. Cruise operators, including Carnival and rival Royal Caribbean Group, have been racing to offer unique and private experiences by […]
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Carnival raises annual profit forecast on resilient cruise demand
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By Neil J Kanatt
(Reuters) -Carnival Corp raised its annual forecast for profit, betting on strong demand as well as ticket pricing for its cruise vacations, even as macroeconomic uncertainties cast a shadow on consumer spending.
Cruise operators, including Carnival and rival Royal Caribbean Group, have been racing to offer unique and private experiences by expanding their portfolio to meet strong demand for exclusive destinations.
Carnival has invested $600 million in Celebration Key, an ambitious private resort destination on Grand Bahama, to help maintain its competitive edge, while bundled packages, perks such as drinks, Wi-Fi, and excursions have encouraged guests to spend more onboard, further boosting revenue.
“Cruise bookings growth continues to outpace that of airlines and hotels, even after several years of outperformance,” said Michael Gunther, vice president, head of insights at research firm Consumer Edge.
Carnival CEO Josh Weinstein said nearly half of 2026 was booked and in line with 2025 record levels “at historical high prices” for both its North America and Europe segments
“Looking further ahead, 2027 is already off to a great start, achieving record booking volumes during the third quarter,” Weinstein added.
Cruise operators still face the risk of consumers pulling back on discretionary spending, as inflationary pressures and tariff-driven uncertainty weigh on travel budgets, while also grappling with higher fuel costs.
Shares of the company, which have risen about 23% this year, were down about 3% in early trading.
The company forecast fiscal 2025 adjusted earnings per share of about $2.14, up from its prior expectations of about $1.97.
The cruise operator reported adjusted profit per share of $1.43 for the quarter ended August 31, beating analysts’ estimates of $1.32, according to data compiled by LSEG.
The company also logged quarterly sales of $8.15 billion, compared with analysts’ estimates of $8.10 billion.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Krishna Chandra Eluri)