Carnival Corporation & plc: Record Earnings and Positive Booking Outlook

Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) has reported record financial results for the fourth quarter and full year 2024, driven by strong demand and strategic pricing. The company's positive booking outlook for 2025 further solidifies its position as a leading global cruise line operator.

Carnival's record-breaking financial performance in 2024 was driven by robust demand, strategic cost management, and operational efficiency. The company's adjusted EBITDA reached an all-time high of $6.1 billion, a 40% increase from the prior year, while operating income soared to $3.6 billion, up 80% year-over-year. This impressive growth was achieved despite a 4.1% increase in cruise costs per available lower berth day (ALBD). Carnival effectively offset higher operating expenses by reducing adjusted cruise costs excluding fuel per ALBD by 7.4% compared to 2023.



The company's success can be attributed to its ability to drive strong pricing and onboard spending, as evidenced by gross margin yields exceeding 2023 levels by 20% and net yields (in constant currency) by 6.7%. Additionally, gross margin per diems were 19% higher than 2023, with both ticket prices and onboard spending up. Carnival's strategic focus on improving operational execution and delivering long-term value for shareholders has enabled it to outperform expectations and achieve record financial results.



Carnival's enhanced destination strategy and increased awareness for cruise travel have also contributed to its record-breaking financial performance. The company's CEO, Josh Weinstein, attributed the strong demand environment and elevated revenues to these strategic initiatives. By offering exclusive cruise vacation experiences and actively promoting cruise travel globally, Carnival successfully drove strong pricing and occupancy, leading to record revenues of $25 billion, a 15% increase from the prior year. This strategy also contributed to a cumulative advanced booked position for full year 2025 at an all-time high for both price and occupancy, further solidifying Carnival's position as a leading global cruise line operator.

Carnival's positive booking outlook for 2025 is a testament to the company's ability to capitalize on strong demand and effective pricing strategies. The company expects adjusted EBITDA per available lower berth (ALBD) for 2025 to be the highest in almost two decades, achieving its 2026 SEA Change target one year in advance. With one year down, Carnival is already over 80% of the way toward achieving its 2026 SEA Change EBITDA and adjusted ROIC targets.

In conclusion, Carnival Corporation & plc's record-breaking financial performance in 2024 was driven by strategic pricing, onboard spending, cost management, and operational efficiency. The company's enhanced destination strategy and increased awareness for cruise travel have further boosted its success. With a positive booking outlook for 2025, Carnival is well-positioned to continue its momentum and deliver sustained financial performance.