TORONTO — Back in early March analysts were predicting lots of chop for the cruise companies, thinking that maybe operations and demand would have a tough time weathering the war, the spike in the price of oil and rising costs.
Carnival Corp.’s latest results prove just how wrong those predictions were.
The mega-cruise company, with nine brands, posted its Q3 2026 results with adjusted net income of US$2 billion. Customer deposits are up close to 7% year over year, to a record $7.6 billion, despite relatively flat capacity growth.
And revenues and yields are at all-time highs, says the company.
FUEL HEDGING – OR NOT
That’s surprising – at first glance – because Carnival Corp. is one of the only U.S.-based cruise companies that doesn’t hedge its fuel buys.
When the price of oil skyrocketed with the start of the war, companies that had locked in were sitting relatively pretty, while companies that opted to roll with market prices for fuel purchases were doing double-takes at the rates.
Demand has been the key factor in driving Carnival Corp. to such a strong performance despite the stratospheric fuel costs.
“Accelerating demand and even stronger cost discipline” put the results over the top of even the company’s own expectations, said CEO Josh Weinstein.
While gross margin yields were down 1.3% year over year, due to higher fuel prices, the company reported a 2.4% increase in net yields. Cruise costs were up 4.2%, also because of the soaring fuel prices. Meanwhile fuel consumption for the company’s nine cruise lines improved 3.8% YOY, a result of every effort made to bring consumption down.
PRICE SENSITIVITY
The Q3 results also included, in Carnival Corp’s words, record levels for 2027 booked occupancy and pricing. “2028 is also off to an excellent start at higher occupancy and prices than last year,” said Weinstein.
“Taken together, the ongoing strength we are seeing across our record booking curve, which has extended out even further, reinforces our confidence in the durability of demand for our cruise lines and the earnings power of our business,” he said.
Carnival Corp.’s luxury brands, like Cunard and Seabourn, might be able to withstand pricing pressure – but markets for other brands like core line Carnival Cruise Line are more price sensitive.
“CLIENTS ARE BEING VERY SELECTIVE”
Travel advisor Gilbert Manza with Executive Travel Services Inc. told Travelweek that cruising’s value proposition has kept sales steady, despite any changes in pricing.
“I’m finding clients are being very selective and are looking where they can combine multiple trip components in one trip to save money and cruising fits that bill,” said Manza.
He added: “Especially companies like Carnival where you have the all-inclusive experience along with seeing multiple locations, all while being on a floating resort that with the new ships and all the offerings is a complete package for one price. It’s a great value when you consider everything you are getting, and is much more economical than doing separate trips.”
Mary Tereshyn, CEO, Operations for 510 Travel, told Travelweek demand is robust no matter the price tag. 510 clients who book Carnival were fine with a higher price, she said. “They like the food, the entertainment, the energy of the ship.”
