Robust travel demand and onboard spending push Carnival Corp to raise full-year profit outlook
Carnival Corp (CCL) raised its annual profit forecast on Tuesday after posting better-than-expected second-quarter revenue, driven by strong demand for cruise vacations and increased onboard spending. The upbeat performance sent shares up 9.5% in early trading.
For the quarter ended May 31, Carnival reported revenue of $6.33 billion, surpassing analysts’ expectations of $6.21 billion, according to LSEG data. The cruise giant also boosted its fiscal 2025 adjusted earnings forecast to $1.97 per share, up from previous guidance of $1.83.
Carnival, whose brands include Princess Cruises and Holland America Line, is benefiting from sustained demand across its Caribbean and Mediterranean routes. Travelers are booking cruises well in advance, and many are opting for bundled packages that include perks like Wi-Fi, drink plans, and shore excursions—helping drive higher onboard spending.
To meet growing demand for exclusive experiences, Carnival is investing heavily in destination development. The company has allocated $600 million to create Celebration Key, a new private resort on Grand Bahama featuring water slides, entertainment venues, and a variety of dining options. The destination is set to open in July and is expected to become a major attraction in the company’s Caribbean offerings.
Carnival’s positive outlook reflects not only strong consumer appetite for travel, but also the company’s ability to monetize that demand through premium experiences and strategic investments. As the cruise industry continues to rebound, Carnival appears well-positioned to capture a growing share of the market and sustain its earnings momentum into next year.
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