by Donald Wood
Last updated: 1:40 PM ET, Mon June 26, 2023

Carnival Corporation & plc announced on Monday its
second-quarter 2023 earnings, adjusted third-quarter forecast and the cruise
company’s focus on the 2026 SEA Change Program.

For the second quarter, Carnival’s adjusted EBITDA was $681
million and revenue reached $4.9 billion, a new record. The company also saw
continued demand acceleration, with total bookings reaching a new all-time high
for all future sailings.

Total customer deposits reached $7.2 billion, surpassing the
previous record of $6 billion by over $1 billion, a 26 percent increase
compared to the last quarter. The second quarter ended with Carnival reporting
$7.3 billion of liquidity following the prepayment of more than $1 billion in
near-term, variable-rate debt. 

“These financial targets are anchored on optimizing capital
allocation through measured capacity growth and will set our course back to strong
profitability and investment grade leverage metrics,” Weinstein said.

As for the adjusted third-quarter forecast, projections show
profit will be marginally below estimates as the cruise operator battles higher
labor and fuel costs while spending more on marketing, according to CEO Josh
Weinstein.

High labor costs, port expenses and a slower-than-expected
drop in inflation forced the cruise company to raise its cost forecast for the
third quarter. Carnival also lowered its annual loss forecast based in part on
higher ticket prices. 

“We are gaining momentum with continued strength in demand,”
Weinstein continued. “We are excited about all the opportunities ahead and the
potential to create outsized value for our shareholders as we work towards our
2026 targets.”

In addition, Carnival also introduced its SEA Change
Program, a set of key performance targets designed to reflect the achievement
of important goals over three years ending in 2026.

The program updated milestones in sustainability, EBITDA and
adjusted Return on Invested Capital (RoIC), with the company expecting to
approach investment-grade leverage metrics by the end of 2026.

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