Carnival Corp Raises Profit Forecast Amid Strong Demand

March 21, 2025 – NEW YORK – Carnival Corp has increased its annual profit forecast after reporting a strong first quarter, attributed to rising ticket prices and robust consumer spending on board its ships. The cruise operator announced the financial results on Friday, showing encouraging advance bookings during the busy ‘wave season.’

Despite rising operational costs, including fuel and promotional expenses, Carnival experienced a surge in demand for cruises. This year’s wave season, which began in January, saw American travelers eager to secure early bookings and indulge in on-board spending, contributing to the company’s positive financial outlook.

Carnival’s revenue for the first quarter reached $5.81 billion, surpassing the analysts’ estimate of $5.75 billion. The firm reported an adjusted profit of 13 cents per share, significantly higher than the anticipated 2 cents. In light of these results, Carnival raised its fiscal 2025 adjusted earnings per share forecast to $1.83, up from the previous estimate of $1.70.

However, despite the favorable earnings report, Carnival shares fell approximately 5% in early trading after the company projected adjusted earnings per share of about 22 cents for the current quarter, missing estimates of 23 cents. CEO Josh Weinstein commented on the situation, stating, “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.”

The cruise industry faces challenges due to ongoing economic uncertainty, particularly from U.S. President Donald Trump‘s recent tariff policies, which could potentially amplify inflation and dampen discretionary spending among consumers.

Carnival operates a diverse fleet of ships, including those under the brands Carnival Cruise Line, Holland America Line, and Princess Cruises. The company continues to monitor shifts in consumer behavior and market conditions as it navigates the complexities of the travel industry.

Reporting by Neil J Kanatt in Bengaluru and Doyinsola Oladipo in New York; Editing by Shinjini Ganguli.