Carnival on Friday forecast a loss for the fourth quarter as higher fuel prices and rising costs of everyday essentials delay its return to profitability, sending the cruise operator’s shares down 19% in midday trading.
Decades-high inflation has further hit cruise operators that have been running at a loss ever since the pandemic broke out in 2020 for an array of reasons including lockdowns, bans on cruises, safety and pandemic-led shortages of labor.
Adding to its challenges, Carnival has been heavily discounting and ramping up advertisements to attract passengers after a long pandemic-led interval.
It also has a higher exposure to the mass-market category that has been more affected by inflation. The company said it expects break even to slightly negative adjusted earnings before interest, taxes, depreciation and amortization for the fourth quarter ending Nov. 30.
Web travel and leisure analyst Jim Corridore said the downward revision to the fourth quarter is not related to demand or revenue but to rising costs to restart operations, supply chain issues and likely higher labor, food and fuel costs.
Decades-high inflation has further hit cruise operators that have been running at a loss ever since the pandemic broke out in 2020. Christopher Sadowski
The cruise operator’s cumulative advance bookings for the current quarter are below the historical range and at lower prices. Earlier this year, Carnival forecast a loss for the year as Moscow’s invasion of Ukraine added further challenges.
The cruise operator’s revenue in the third quarter ended Aug. 31 rose to $4.31 billion from $546 million a year earlier, but missed analysts’ average estimate of $4.90 billion, according to IBES data from Refinitiv.
Net loss, however, narrowed to $770 million, or 65 cents per share, from $2.84 billion, or $2.50 per share, a year earlier.
Carnival stock sinks after cruise line warns of longer voyage to turning profit
1 COMMENT
LEAVE A REPLY
- Advertisment - 
Recent Comments
on Dubai International Airport sees 41.6 million passengers in first half of year, more than in 2019
on Devout athletes find strength in their faith. But practicing it and elite sports can pose hurdles
on Despite strong Lunar New Year holiday data, consumer spending in China isn’t roaring back just yet
on Dave Portnoy: Taylor Swift’s security should ‘drag Kim Kardashian to jail’ if she attends Eras Tour
on CONCEPT ART: New Details Revealed for Disney Cruise Line Lookout Cay at Lighthouse Point Destination
on “Completely Knocked Me Out”: Rob Lowe Recalls Boxing Match With Tom Cruise On 1983 Brat Pack Classic
on CBS Sports, Serie A announce new TV rights deal; Paramount+ to air over 400 Italian soccer matches
on Cam Newton’s Violent Public Incident Draws Hilarious Reaction From 3x All-Star: “Where Do I Sign Up
on Boston College vs. Army live stream, how to watch online, CBS Sports Network channel finder, odds
on Angel Reese Launches Foundation Dedicated To Empowering Women Through Sports & Financial Literacy
on A weaker dollar, skyrocketing prices and ‘record’ visitor numbers: Good luck in Europe this summer
Your blog has quickly become one of my favorites I always look forward to your new posts and the insights they offer