Carnival Corp. Off To Strong Start, Rest Of Year Looks Good

Open Jaw

With revenue slightly higher and yields up significantly, Carnival Corporation & plc exceeded analyst expectations for the first quarter of 2017. And the cruise giant says the good news doesn’t end there, with booking volumes and pricing for the remainder of the year running ahead of 2016.

“We are off to a good start delivering another quarter of operational improvement on top of a very strong first quarter last year,” said President and CEO Arnold Donald.

“Our performance was driven by increased demand, particularly for our core Caribbean itineraries, leading to higher year-over-year ticket prices which enabled us to overcome the significant negative impact of both fuel and currency to exceed the high end of our guidance range.”

Donald added that Carnival and its 10 brands and over 100 ships enjoyed a strong ‘Wave Season,’ the peak booking period for the company.

“We are clearly benefiting from our efforts to increase cruise consideration through guest experience innovations, creative marketing, and public relations programs. We are reaching consumers through multiple touch points and laying the foundation for continued earnings improvement and sustained double digit returns on invested capital.”

Carnival Corp. Q1 highlights included:

  •  The January announcement at the Consumer Electronics Show of guest experience innovation the Ocean Platform -- featuring Ocean Medallion. The experience will debut on Princess Cruises’ Regal Princess in November 2017 followed by additional Princess ships in 2018.
  • The official debut of Seabourn Cruises’ newest ship, Seabourn Encore, with its naming ceremony in Singapore.
  •  A memorandum of agreement with Italian shipbuilder Fincantieri to build two new ships. The first is designated for Holland America Line to be delivered in 2021 with the second for Princess Cruises in 2022.
  • Following Carnival Corp.’s historic sailings from the U.S. to Cuba through its Fathom brand, CCL received approval to begin operating cruises to the island. Carnival Paradise will be the largest cruise ship to sail to Cuba from the U.S. when it begins calling in Havana in June.

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