Carnival forecasts robust 2025 bookings as cruise demand booms

(Reuters) -Cruise operator Carnival (NYSE:CCL) Corp forecast strong bookings for 2025 ahead of the busy summer season as Americans remained eager to spend on experiences even as ticket prices increased, sending its shares up about 3% on Friday.

The resilient demand for cruise vacations also helped Carnival post better-than-expected profit and sales for the fourth quarter, but the company forecast annual profit below estimates due to rising input costs and advertising spending.

Adjusted cruise costs, excluding fuel, increased 7.4% from 2023 but were better than the firm’s projections of about 8%, announced 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,” CEO Josh Weinstein said in a statement.

On a constant currency basis, Carnival’s cumulative advanced booked position for next year is at an all-time high for occupancy and price, with both surpassing 2024 in all four quarters of 2025.

The Miami, Florida-based company reported quarterly revenue of $5.94 billion, compared with analysts’ estimates of $5.93 billion, per data compiled by LSEG.

Its adjusted profit for the quarter was 14 cents per share, above estimates of 8 cents.

Carnival plans to roll out heavier promotions in the run up to the deal-heavy wave season, which starts right after winter holidays and lasts till the end of March.

The higher promotional expenses as well as maintenance costs due to increased dry dock days led the company to forecast annual profit of $1.70 per share, below estimates of $1.74.