Is Carnival cruise line in financial trouble?

However, investors should note that Carnival's debt levels more than tripled throughout the COVID-19 crisis. It ended the first quarter of fiscal 2023 with $32.7 billion in long-term debt, compared to $9.7 billion at the end of fiscal 2019, which gives it a staggering debt-to-equity ratio of 5.6.



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Carnival now expects adjusted annual loss per share between 8 cents and 20 cents, compared with its earlier forecast of a loss per share of 28 cents to 44 cents. The company beat second-quarter revenue estimates and posted a smaller-than-expected loss. Our Standards: The Thomson Reuters Trust Principles.

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How Much Debt Does Carnival Corporation & Carry? The chart below, which you can click on for greater detail, shows that Carnival Corporation & had US$33.8b in debt in May 2023; about the same as the year before. However, it also had US$4.47b in cash, and so its net debt is US$29.3b.

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Other cruise brands that have shut down over the past four years, almost all citing the financial effects of the pandemic, include luxury line Crystal Cruises and its two Asia-based sister brands, Dream Cruises and Star Cruises; Japan-based Venus Cruises; India-based Jalesh Cruises; Swedish-based Birka Cruises; U.S.- ...

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Key Takeaways. Carnival Corporation posted record revenue and its first quarterly profit since 2020, thanks to a surge in bookings as the post-pandemic travel boom continued unabated. Net income came in at $1.07 billion, or 79 cents per share, which exceeded estimates of 73 cents.

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The latest forecasts from S&P Global Market Intelligence show all three major cruise lines losing money until at least Q3 2022 and Q4 being rather hit or miss. That being said, things should start to settle down in 2023 and thereafter.

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Covid-19 shut the industry for the best part of two years, leaving the Big Three — Carnival Corp, Royal Caribbean Group and Norwegian Cruise Line Holdings — under an unprecedented pile of debt that they will be paying down for years. Carnival is $35bn in the hole, Royal Caribbean owes $24bn and Norwegian owes $13.4bn.

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The 2023 cruise industry is booming. It has far surpassed 2019 levels, breaking sales records in a furious, post-pandemic comeback. Like most tourism sectors, cruising is reaping the benefits of “revenge travel”— vacationers making up for the time that was lost during the pandemic.

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Some of the environmental challenges that cruise lines need to address are air pollution from heavy oil, wastewater discharge issues, habitat disruption, and overtourism. The 'elephant in the room' is that cruise lines are currently using heavy oil – also known as the dirtiest of the dirty oils.

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The Company intends to use the proceeds from the Refinancing Transactions to repay a portion of the borrowings under the Company's existing first-priority senior secured term loan facility maturing in 2025.

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With this debt repayment, we now expect our year end debt balance to be less than $32.0 billion , an improvement over the November 30, 2023 debt balance of less than $33.0 billion provided in our June guidance.

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For the fiscal year, Carnival forecasts an adjusted loss of 4-12 cents a share. Carnival guided fiscal 2023 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) between $4.1 billion to $4.2 billion, which includes a $125 million hit due to fuel prices.

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Out of 15 analysts, 9 (60%) are recommending CCL as a Strong Buy, 2 (13.33%) are recommending CCL as a Buy, 3 (20%) are recommending CCL as a Hold, 0 (0%) are recommending CCL as a Sell, and 1 (6.67%) are recommending CCL as a Strong Sell. If you're new to stock investing, here's how to buy Carnival stock.

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Carnival shares sank on Monday after the company's current quarter profit outlook missed expectations. The cruise line operator said a slower-than-expected drop in inflation will raise costs. Carnival's sales in the second quarter hit a record high, and its loss was below estimates.

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Cruising in 2023 is mostly back to normal following the pandemic-induced changes implemented across the industry in 2021 and 2022. Pre-cruise testing has been almost entirely abolished, ships are sailing at full capacity, and new ships are being constructed.

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Royal Caribbean has cancelled a second Radiance of the Seas cruise due to continued propulsion issues and needed repairs. Royal Caribbean International has begun reaching out to guests booked on the September 8, 2023 departure of Radiance of the Seas with the news that the sailing has to be cancelled.

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Cruise lines make money primarily from ticket sales, customers spending aboard their ships while cruising, sales of add-on travel services such as insurance and excursions, advertising, and sponsorship deals with brands.

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With a lower price-to-sales ratio, better revenue gains last year, and less debt accumulation since 2019, Norwegian Cruise Line Holdings is the better buy in today's market.

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Suicide and murder (29%) and falls overboard or from height (24%) were the primary cause of crew member deaths. The most passenger deaths occurred on Carnival Cruise Lines (29%), Royal Caribbean Cruises (12%), and Norwegian Cruise Line (10%).

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Cruises are still great! The trick is finding the line/itinerary/ship that matches what you are looking for and set your expectations appropriately.

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Most cruise lines are now operating at full capacity, with the age of Covid restrictions in the rear view mirror. But questions remain.

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