Strong Cruise Demand Drives Improved Carnival Corp Profit Forecast

Carnival Corporation & plc raised its profit forecast following a strong first quarter in which it hit record revenue, due in large part to the high demand for cruising. 

First-quarter revenues reached $5.8 million, up $400 million from the first three months of 2024. Meanwhile, operating income was nearly double from last year, at $543 million. Adjusted EBITDA also increased 38 percent year-over-year, at $1.2 billion for the quarter. 

Spurring this higher revenue was a successful wave season, with higher pricing due to less 2025 inventory available for sale. According to the corporation, pricing is at historical highs for each quarter, with occupancy aligned with 2024's record. Travelers are booking further out than they have previously. 

The corporation predicts the second quarter will also see increases, with net yields up 4.4 percent year-over-year and a 10 percent increase in adjusted EBITDA of around $1.3 billion. 

Due to this record-breaking revenue, Carnival Corp. has increased its profit forecast for the rest of the year, expecting net yields of 4.7 percent over 2024, which is a half-point higher than it was previously. 

While it still expects the same cruise costs, it increased its adjusted net income by over 30 percent compared to 2024, with an adjusted EBITDA of around $6.7 billion, better than it previously expected. 

"While we are not completely immune from the heightened macroeconomic and geopolitical volatility since providing our December guidance, we are still taking up our earnings expectations for the year and we remain on track to have another stellar year across our cruise brands," said Carnival Corporation & plc's Chief Executive Officer, Josh Weinstein.

"This raise incorporates our increased first quarter yield results and reduced interest expense thanks to our recent successful refinancings," Weinstein continued. "We are also affirming our December yield guidance for the remainder of 2025, as our booking curve continues to be the farthest out on record, at record prices (in constant currency), onboard spending is robust and we have proven to be incredibly resilient."

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