Thu, Jun 27, 2:19 PM (72 days ago)
Carnival Corporation & plc reported a notable improvement in financial performance for the quarter ended May 31, 2024. Revenues increased to $5.8 billion, up 18% YoY, driven by higher passenger ticket revenues and onboard spending. Operating income surged to $560 million from $120 million in the previous year, reflecting increased occupancy and ticket prices. The company also reported a net income of $92 million, reversing a loss of $407 million a year earlier. Key financial metrics showed positive trends: occupancy rose to 104% from 98%, and passenger cruise days increased to 24.3 million from 21.8 million. However, operating expenses grew by 10% due to higher capacity and increased costs. Interest expenses decreased by 17% to $450 million, aided by debt reduction and lower interest rates. Carnival's liquidity stood at $4.6 billion, including $1.6 billion in cash and $3.0 billion in available credit. The company maintained a substantial working capital deficit, typical for its business model, but increased customer deposits to $7.9 billion. The company faces uncertainties from fuel price volatility, foreign currency fluctuations, and regulatory impacts, including a potential $200 million annual impact from a global minimum tax starting in 2026.