Skift Take
Carnival is the first cruise line to acknowledge the potential impact of the tragic Francis Scott Key Bridge collapse on the industry. A key port will be temporarily unavailable.
Carnival Corp. executives informed investors on Wednesday that a tragic bridge collapse in Baltimore could lead to losses of up to $10 million for the cruise line operator this year.
During a first-quarter earnings call, David Bernstein, chief financial officer of Carnival Cruise Corporation, stated that the cruise line operator may incur a loss of “up to $10 million for the full year 2024 from the temporary change in home port.” Bernstein mentioned a potential impact on adjusted net income and adjusted EBITDA.
On March 26, the Francis Scott Key Bridge connecting Baltimore and Dundalk in Maryland collapsed after a container ship struck one of its pillars.Â
The tragic event halted ship traffic at a port used by Carnival. One of the company’s Carnival Cruise Line ships typically departs year-round from Baltimore. Executives mentioned that the ship will temporarily operate from Norfolk, Virginia.
Carnival Alters Red Sea Itineraries
Carnival Cruise suffered a $130 million impact from rerouting itineraries involving the Red Sea due to ongoing hostilities from the Houthi, as explained by Bernstein.
The company’s itineraries in the Caribbean, Alaska, and Europe showed improved performance, offsetting the impact.
Strong Bookings Despite Higher Prices
Executives expressed confidence that the Baltimore bridge collapse or Red Sea issues would not affect the company’s overall performance strongly, attributing this to an increasing wave of robust customer demand globally.
Booking volumes for future trips recently reached record levels despite higher prices this year.
“Even with less inventory available for the remainder of the year, booking volumes hit an all-time high, driven by demand for 2025 sailings and beyond,” stated Josh Weinstein, president, CEO, and Chief Climate Officer of Carnival Corp.
Occupancy Growth
Carnival’s occupancy rate surged by 11 percentage points year over year during the quarter, with both European and North American brands showing positive growth.
“At the same time, we saw significant growth in occupancy of nearly 20 percentage points at our European brands as they return to historical occupancy levels,” mentioned Weinstein. “Our North American brands also experienced strong single-digit occupancy growth.”
Guest Upsells Accelerate
Onboard revenue increased from last year due to strong pre-cruise sales, referring to purchases made before the ship’s departure.
“We saw a double-digit increase in the percentage of pre-cruise sales contributing to onboard revenue in the first quarter,” Weinstein noted.
Mixed Quarter
In the first quarter, Carnival welcomed 3 million guests and generated $5.4 billion in revenue, setting a record for the company. However, Carnival also reported a net loss of $214 million in the quarter.
Carnival to Expand Fleet
Carnival Cruise plans to further expand its fleet.
“We’re considering adding one to two ships each year starting in 2027,” stated Weinstein. “There won’t be another one in 2027, that’s what we have planned. As for 2028, it’s not confirmed, but it’s also not ruled out.”
More of Carnivalâs Guests Are New to Cruises
The number of first-time cruise guests increased by 30% in the first quarter compared to last year.Â
“We have expanded our reach to attract more guests new to cruising beyond our regular brand repeaters,” said Weinstein.
