Carnival US Performs Well Despite Red Sea Risks "Increase in Cruise Travelers"

Cruise company Carnival is understood to have posted strong results despite the military tensions surrounding the Red Sea earlier this year. This was due to a surge in revenge travel demand via cruises following the end of the COVID-19 pandemic.

On the 27th (local time), Carnival announced that its revenue for the first quarter of this fiscal year increased by 22% year-on-year to $5.41 billion. Although this was slightly below analysts' estimates of $5.42 billion, the market generally interpreted it as a solid performance.

Thanks to the increase in cruise travelers this year, Carnival expects bookings to reach an all-time high. In the first quarter, the number of new cruise customers surged by more than 30% compared to the same period last year.

Accordingly, Carnival raised its earnings per share (EPS) forecast for this year from the $0.07?$0.08 range projected in January to $0.09. EPS is an indicator showing how much net profit a company earns per share. The higher the EPS, the more positive it is for the market. Josh Weinstein, Carnival’s CEO, said, “The first quarter was overall fantastic,” adding, “This signals a great start to the year.”

Despite the ‘Red Sea risk’ that the cruise industry has faced since early this year, Carnival is evaluated to have performed well. The cruise industry has had no choice but to respond by canceling or rerouting through the Red Sea due to the threat to maritime safety posed by the Yemeni Houthi rebels. Carnival’s Chief Financial Officer (CFO), David Bernstein, stated, “We probably will not sail through the Red Sea this year or next year.”

On the 26th, Carnival estimated that the closure of Baltimore Harbor following the collapse of the Francis Scott Key Bridge in Maryland in the early morning could cause a loss of up to $10 million in annual EBITA (Earnings Before Interest, Taxes, and Amortization) and EPS. Carnival announced that it will first change the departure port for the 7-day cruise scheduled for the end of this month from Baltimore Harbor to Norfolk Harbor in Virginia.

On the same day, Carnival’s stock closed at $17.19, up about 1% from the previous trading session on the New York Stock Exchange.

This content was produced with the assistance of AI translation services.