Wednesday, January 31, 2024
Carnival Corporation & plc prioritizes the safety and well-being of its guests and crew. The company has been actively monitoring the situation in the Red Sea and surrounding region. In response to recent developments and in consultation with global security experts and government authorities, Carnival has decided to adjust the itineraries for 12 ships across seven brands, originally originally planned to navigate through the Red Sea until May 2024. The rerouting is anticipated to impact adjusted earnings per share by $0.07 to $0.08 for the full year 2024, with the majority of the impact expected in the second quarter. Despite this, the company has observed no adverse effects on booking trends related to the Red Sea situation, and there are no planned Red Sea transits until November 2024.
Carnival reports a strong start to the wave season, surpassing expectations and reaching an all-time high in booking volumes since November. The company maintains its best booked position on record for 2024, with pricing (in constant currency) and occupancy significantly higher than 2023 levels. Bookings for the first half of 2024 are nearly fully booked. Carnival expects the sustained positive booking momentum to offset the impact of the Red Sea rerouting throughout the year.
Moreover, the corporation has declared its intention to redeem the remaining $571 million of 9.875% second-priority senior secured notes scheduled to mature in 2027. This move eliminates all remaining second lien debt and aligns with the guidance provided in December. Carnival aims to leverage its robust cash flow to reduce interest expense and work towards achieving investment-grade credit metrics.
Saturday, April 27, 2024
