Carnival raises profit forecast on strong cruise demand, exceeding revenue estimates.

From Yahoo Finance: 2025-06-24 09:28:00

Carnival Corp raises profit forecast after beating Q2 revenue estimates due to strong demand for cruises to Caribbean and Mediterranean. Shares rise 9.5% in early trading. Company commits $600 million to develop Celebration Key private resort on Grand Bahama. Bundled packages offering perks boost onboard spending and revenue.

Cruise operators, including Carnival Corp and Royal Caribbean, are expanding their portfolio of private islands to meet demand for exclusive destinations. Carnival’s new private resort, Celebration Key, features water slides, entertainment venues, and dining establishments. The facility is set to debut in July. Bundled packages offering perks like drinks, Wi-Fi, and excursions have encouraged guests to spend more onboard, boosting revenue for cruise lines.

Carnival Corp reported sales of $6.33 billion for the quarter ended May 31, exceeding analysts’ estimates of $6.21 billion. The company forecasts fiscal 2025 adjusted earnings per share of about $1.97, compared with prior expectations of $1.83. This positive outlook is driven by strong demand for cruises and bundled packages.

Read more: Carnival hikes annual profit target on steady cruise demand