Carnival Corporation is one of the world’s largest cruise operators and a leader in leisure travel. The company recently released its third quarter earnings, which showed that it has been boosting revenue year over year despite increasing competition from rival companies like Disney Cruise Line. Carnival also announced that it would be opening up new ships to accommodate more guests as well as expand into smaller markets with less stiff competition.

The “carnival announcement today” is a new update by Carnival. The company announced that they are pushing forward with their business and will be releasing more updates in the future.

Carnival Releases Business Update and Pushes Forward

The first-quarter figures for 2022 have been released by the world’s biggest cruise operator. Despite the fact that Carnival Corporation is still losing money, the firm is seeing record onboard sales, up 7.5 percent from the previous year, and reservations at their best levels since the company reopened. 

The Carnival is waiting for its full fleet to be up and operating for each company’s summer season, since the bulk of its income come from the busy summer season. Carnival Corporation is making a leaner, but stronger, post-pandemic comeback with the withdrawal of three more ships from its fleet. 

Results from the First Quarter Despite Omicron, you’re looking well.

Despite continuing losses and Omicron having a negative impact on reservations, Carnival Corporation’s first-quarter performance seem to be good. Onboard revenue, in particular, increased by 7.5 percent in 2019 compared to the previous year’s record-breaking year. 

Omicron seems to have had little impact on the cruise line’s short-term reservations, however it did encounter more cancellations due to pre-travel testing. It meant that ship occupancy was just 54 percent at the conclusion of the quarter, a 20 percent increase over the fourth quarter of 2021.

Carnival Cruise LogoJHVEPhoto / Shutterstock / Shutterstock / Shutterstock / Shutterstock / Shutterstock /

Carnival Corporation & plc President, Chief Executive Officer Arnold Donald noted: “Despite the impact of Omicron, guests carried grew by nearly 20 percent in the first quarter compared to the prior quarter, while simultaneously increasing revenue per passenger cruise day and driving an improvement in adjusted EBITDA. We expect monthly adjusted EBITDA to turn positive by the beginning of our summer season as we build occupancy and return more ships to service.”

Carnival remains financially stable, with $7.2 billion of liquidity. The company invested $400 million during the first quarter of 2022, which included payment for three of the four larger-more efficient ships expected to be delivered in 2022, including Carnival Celebration and P&O UK’s Arvia. 

The Carnival Corporation has become leaner and more efficient.

Carnival Corporation’s cruise ships have sailed with more than 2 million passengers since Carnival Cruise Line was the first cruise line to restart operations in the United States in July of 2021. 

“Since restarting passenger cruise operations, we have offered over 2.2 million wonderful vacations while reaching record high guest satisfaction levels,” said Arnold Donald. We are well on our approach to returning to full cruise operations, with 75 percent of our capacity having resumed passenger cruise operations, and we hope to return the remainder of the fleet by our summer seasons. The efforts of our team, ship and shore, to achieve these operational goals despite confronting headwinds such as Delta and Omicron variations, changing rules and norms —especially at our scale— are all the more noteworthy.”

Carnival Corporation has also become a lot leaner and more effective firm as a result of unloading 22 cruise ships and taking on six new LNG-powered cruise ships in the previous year.

Carnival-owned Cruise ShipsPhoto credit: Shutterstock/Wangkun Jia

“We maintained our fleet optimization efforts during the quarter by taking delivery of three bigger, more efficient ships, Costa Toscana and AIDAcosma, the company’s fifth and sixth LNG-powered ships, and Discovery Princess,” Donald stated. When we resume full operations, roughly 25% of our capacity will be new ships, which we feel will speed up our return to profitability and boost our return on invested capital.”

By summer of this year, Carnival expects to be fully operational for the first time in more than two years with all of its Northern Hemisphere brands, while P&O Australia will begin operations down under as well. Bookings reflect the positive feeling here. 

Carnival Corporation has witnessed an increase in weekly booking volumes for future sailings since the middle of January. Since the resumption of guest cruise operations, weekly booking numbers have been greater than ever.

“We foresee a protracted wave season, given the recent uptick in booking numbers and the closer-in booking trends,” Donald says. In fact, even in March, we increased occupancy, with fleetwide occupancy surpassing 70% and certain sailings even topping 100%.”

Carnival Cruise Line MiamiPhoto credit: Shutterstock/Felix Mizioznikov

Uncertainty exists in Ukraine as a result of the current situation.

Now that COVID seems to be fading into the background, a new scenario has emerged that will have a huge impact on Carnival’s financial results. Carnival’s liquidity and operating performance are projected to be harmed as a consequence of the situation in Ukraine and the unfavorable impact on global fuel prices.

Also read: Carnival Makes a Donation to Aid Ukraine Relief Efforts

While the acquisition of LNG-powered ships and the retirement of 22 older, more efficient ships is obviously beneficial, the firm anticipates a loss in the second quarter of 2022, a profit in the third quarter, but an overall loss in 2022. 

However, any out-of-the-ordinary expenditures, such as putting ships back into service, do not seem to be a reoccurring concern until 2023. There are still numerous obstacles in the way for Carnival Corporation, but it is progressively working its way out of the problems caused by the epidemic. 

Carnival-Owned Cruise Ships

Carnival Cruise Line has released a business update and is pushing forward with its plans. The company recently announced that it will be adding new ships to its fleet, which includes the Carnival Vista, Carnival Triumph, and Carnival Horizon. Reference: carnival cruise line stock.

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