Carnival Corp tightened cost controls
2022.12.21 14:19
Carnival Corp tightened cost controls
Budrigannews.com – As the cruise line managed to keep operating expenses under control, Carnival Corp. reported a smaller-than-expected quarterly loss on Wednesday. This resulted in the shares of the company rising by approximately 7% in morning trading.
Carnival is one of the cruise line operators (NYSE:) have been struggling with rising fuel costs, a stronger U.S. dollar, and higher interest rates, all of which have been made worse by the ongoing conflict between Russia and Ukraine.
In an effort to streamline the brand in light of the ongoing closure of cruise operations in China, Carnival has been removing two ships from its Costa Cruises line and some of its less efficient ships from the company’s fleet.
The business also stated that it anticipates 90 percent occupancy or slightly higher for the current quarter and that occupancy will return to historical levels in the summer of 2023.
“Booking (NASDAQ:) “We have seen a measurable lengthening in the booking curve, across all brands,” said Chief Executive Officer Josh Weinstein. “Volumes strengthened following the relaxation of protocols, cancellation trends are improving globally, and we have seen a measurable lengthening in the booking curve.”
According to IBES data from Refinitiv, the cruise operator’s revenue increased to $3.84 billion in the fourth quarter that ended on November 30 from $1.29 billion a year earlier, but it fell short of analysts’ average estimate of $3.91 billion.
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Compared to analysts’ expectations of 87 cents per share, the company reported a smaller adjusted net loss of 85 cents per share.
