MIAMI — Carnival Corporation’s advance bookings for the first half of 2019 are ahead of the prior year, and even better, prices are holding steady.
Starting in June Carnival Corporation’s booking volumes for the first half of 2019 were running “significantly higher” than the prior year, at lower prices compared to the prior year.
But more recently, during the first half of September, booking volumes for the first half of next year have continued to run significantly higher than the prior year but at higher prices compared to the prior year.
Based on these booking trends, the company says it expects continued net revenue yield improvement for the first half of 2019, albeit with increases less than the net revenue yield guidance for the fourth quarter of 2018, primarily due to comparisons to a very strong prior year.
Releasing its Q3 2018 results, Carnival Corporation announced U.S. GAAP net income of $1.7 billion for the third quarter of 2018, up from $1.3 billion in Q3 2017.
Revenues for the third quarter of 2018 were $5.8 billion, higher than the $5.5 billion in the prior year.
“Strong execution delivered the highest quarterly performance in our company’s history, overcoming fuel and currency headwinds,” said Carnival Corporation & plc President and CEO Arnold Donald.
Gross revenue yields (revenue per available lower berth day or “ALBD”) increased 4%. Gross cruise costs including fuel per ALBD decreased 2.6%. Changes in fuel prices (including realized fuel derivatives) and currency exchange rates decreased earnings by $0.08 per share.
“We are on track to achieve double digit return on invested capital in 2018 as we deliver upon our strategy to create demand in excess of measured capacity growth, all while containing costs and leveraging our industry leading scale,” added Donald. “Going forward, we remain on a path toward continued growth in earnings and returns, driven to a greater degree by capacity increases as we add more efficient ships, replacing less efficient capacity.”
Highlights from the third quarter include the signing of an agreement between Princess Cruises and Italian shipbuilder Fincantieri S.p.A to build two new liquefied natural gas (LNG) cruise ships that will be delivered in 2023 and 2025, bringing the total to 11 LNG cruise ships on order. Holland America Line announced the sale of Prinsendam, which will leave the fleet in July 2019. Seabourn received approval to begin sailing to Cuba from Miami and San Juan, the cruise company’s third cruise brand currently approved to sail to Cuba.
