Join our crew and become one of the 104,670 members that receive our newsletter.

Carnival Sunshine cruise ship underway at sea

Photo: Ivan Cholakov / Shutterstock.com

Carnival Earnings Outlook Misses While Fuel Costs Near 15-Year High

Bloomberg
Total Views: 1368
September 29, 2023

(Bloomberg) —

Carnival Corp. posted a profit for the first time since 2020 but issued a fourth quarter earnings outlook that missed Wall Streets’ expectations as higher fuel and currency costs weigh on its operations. 

Adjusted earnings before interest, tax, depreciation and amortization costs will be $800 million to $900 million in the fourth quarter, Carnival said in a statement Friday morning. Analysts had expected $950 million on average. 

“While we’ve experienced volatility in fuel prices before, there’s only been one other period in the last 15 years that our fuel price has been this level,” Chief Executive Officer, Josh Weinstein, said on the company’s earnings call.

The hit from currency headwinds and higher gas prices — which are expected to spike by 20% in the upcoming quarter — could hit the company’s full year outlook by as much as $130 million, Weinsten said.

Still, strong demand and record revenues in the third quarter should be more than enough to offset those unexpected expenses. Carnival maintained its 2023 view for EBITDA of $4.1 billion to $4.2 billion. 

The strong sales came amid increased consumer demand for travel in America, which Carnival sees persisting. “I continue to be encouraged with our revenue trajectory heading into next year as we see no signs of slowing from our consumers,” Weinstein said. 

Shares fluctuated in early trading in New York. They were down 3.01% as at 10:34 a.m. Peers Royal Caribbean Cruises Ltd. and Norwegian Cruise Line Holdings were also both trading lower.

© 2023 Bloomberg L.P.

Weekly Insights from the Helm

Dive into a sea of information with our meticulously curated weekly “Dispatch” email. It’s more than just a newsletter; it’s your personal maritime briefing.

Sign Up
Back to Main
polygon icon polygon icon

Why Join gCaptain Club?

Be Informed: Stay updated with the latest maritime news and trends.

Connect: Network with a community of maritime professionals and enthusiasts.

Gain Insights: Receive exclusive content and personal perspectives from our CEO.

Sign Up
close

JOIN OUR CREW

Maritime and offshore news trusted by our 104,670 members delivered daily straight to your inbox.

Join Our Crew

Join the 104,670 members that receive our newsletter.