(Reuters) -Carnival Corp on Tuesday raised its annual profit forecast for the second time this year, banking on higher prices for its routes and continued demand for cruise vacations to destinations including the Caribbean and Alaska.
The company’s U.S.-listed shares, which are down more than 11% this year, rose 6.5% to $17.45.
2024 has been a record year for cruise lines, with booking volume reaching an all-time high as travelers continue to seek newer experiences and fun activities at affordable fares, giving companies plenty of room to increase ticket prices to offset higher operating costs.
“The company continues to experience strong booking momentum, driven by record booking volumes for 2025 sailings,” said Carnival CEO Josh Weinstein.
“Although it is still early, the cumulative advanced booked position for full year 2025 is even higher than for 2024, both in terms of price (in constant currency) and occupancy.”
Carnival’s total customer deposits reached a record high of $8.3 billion during the second quarter, surpassing the previous record by $1.1 billion, the company said.
The cruise line now expects 2024 adjusted earnings per share of about $1.18, up from its previous forecast of 98 cents.
The company also expects adjusted earnings of $1.15 per share for the third quarter. Analysts had expected earnings of $1.10, according to LSEG data.
Cruise costs per available day at lower berth, or a ship’s passenger capacity while sailing and in service, increased 4% in the second quarter.
Adjusted cruise costs at constant exchange rates were better than the company’s own estimates, partly due to the timing of the expenses, Carnival said.
(Reporting by Granth Vanaik in Bengaluru and Doyinsola Oladipo in New York; Editing by Shounak Dasgupta)
