Carnival Corp.'s stock has increased after the company reported improved earnings, cruise ship occupancy levels, and reservations for upcoming voyages.
(AP) MIAMI — Long-distressed Carnival Corp. shares rose more than 12% on Friday after the company announced significant increases in revenue, occupancy rates, and bookings for upcoming excursions.
However, the business reported a $1.83 billion loss for the second quarter and predicted a further loss in the third quarter due to the pandemic's effects and increasing fuel prices.
Nine cruise brands are operated by Carnival, and 91% of its fleet is back at sea. Ship occupancy increased from 54% in the previous quarter to 69% in the quarter that concluded last month. According to the firm, bookings nearly doubled from the first quarter and were the highest since the pandemic's start.
A portion of the rise in reservations, according to CEO Arnold Donald, came from people who delayed making decisions during a spike in COVID-19 earlier in the year, and a portion reflected pent-up demand following more than two years of the pandemic.
"People are becoming more at ease with having this infection. According to Donald, they are eager to travel. We are in a good position since vacations are still popular, and we offer a lot better deal than a traditional land-based vacation.
After non-recurring charges, the Miami-based company reported that the loss came to $1.64 per share. Zacks Investment Research surveyed five analysts, and their consensus prediction was for a loss of $1.14 per share.
The $2.4 billion in revenue was less than the $2.83 billion average Zacks projection.
Carnival shares are still down 46% since the year's beginning despite Friday's improvements.
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