Carnival Corp enters 2024 in record booked position despite fourth quarter loss
Carnival Corporation is entering the new year in the best booked position on record with “nearly two-thirds” of 2024 capacity sold at “considerably” higher prices.
The cruising giant, which operates nine brands including P&O Cruises and Cunard, reported a record fourth quarter revenue of $5.4 billion and a full year revenue of $21.6 billion in its final quarterly results of 2023.
Total customer deposits reached a fourth quarter record of $6.4 billion surpassing the previous record of $5.1 billion for the same three-month period.
However, the company reported an adjusted net loss of $90 million for the fourth quarter, which was above the “better end” of the September guidance.
Chief executive Josh Weinstein said: “We ended the year on a high note with another record-breaking quarter that exceeded expectations and achieved positive full year adjusted net income.
“In fact, we consistently outperformed in all four quarters of the year, buoyed by a strengthening demand environment across all our brands.”
Weinstein added: "We entered the year with the best booked position we have ever seen, and now have nearly two-thirds of our occupancy already on the books for 2024, at considerably higher prices.”
Weinstein said Carnival Corp was seeing “strong bookings momentum” across the board, with the firm’s European brands showing “remarkable strength during the quarter with booking volumes running up well into the double digits at considerably higher prices.”
Brands will be an "even greater contributor’
Carnival’s European brands are poised to become “an even greater contributor” to the company in 2024, he added.
He added: "We’ve got dedicated European brands in P&O Cruises in the UK, Costa Cruises in France, Spain and Italy and Aida Cruises in Germany. All of these brands are either the biggest or the second biggest in their market.
"We will not deviate from our strategies [for those markets]. We’re in a good position to capitalise on the strength of European customers."
Weinstein revealed that Carnival’s brands carried 3.5 million new-to-cruise guests in 2023. “We’re gaining momentum and closing the value gap with land-based alternatives,” said Weinstein.
Carnival Corp said it had invested more in advertising over the 18 months than ever before. “Our web visits are up 35% and our natural searches were up 75%, which were many multiples above our 5% capacity growth [in 2023],” he noted.
Looking ahead, the company expects adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of $5.6 billion in 2024, over 30% growth compared to 2023.
Carnival Corp chief financial officer David Bernstein said: “2024 occupancy levels are on track to return to historical levels. 2019 was a high-water mark for occupancy. As we balance pricing and volume, we can achieve record yields in 2024.”
He told investors how the company had made $6 billion worth of debt repayments in 2023, meaning it ended the year with just over $30 billion of debt.
"[This] is $3 billion better than we forecasted just nine months ago during our March conference call and $5 billion off the first quarter peak,” Bernstein added.
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Place of registration: England and Wales.
Company number 08723341.
Registered address: 6th Floor, 2 London Wall Place, London EC2Y 5AU
