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Carnival Corporation forward bookings ‘steady at higher prices’

Forward bookings for Carnival Corporation brands are in line with this time last year at higher prices.

The projection emerged as the world’s largest cruise conglomerate delivered record profits for the three months to May 31.

The company saw adjusted net income in the second quarter of its financial year rise by 30% year-on-year to $489 million.

The increase came in the face of rising fuel prices which sent gross cruise costs up by 8.2% on the same time last year.

However, the parent company of brands such as P&O Cruises, Cunard and Princess Cruises, saw gross revenue yields rise by 8.8%.

Overall revenue was up to $4.4 billion from $3.9 billion in the second quarter of 2017.

Chief financial officer David Bernstein told analysts: “Booking volumes for the remaining two quarters of 2018 have been running ahead of last year at prices that are in line with the prior year.

“At this point in time, cumulative bookings for the remaining two quarters of 2018 are slightly ahead of the prior year at higher prices.”

Overall bookings for 2019 are slightly ahead of this time last year prior year at higher prices, he added.

President and chief executive Arnold Donald said: “We delivered another strong quarter, again achieving record adjusted earnings on record revenues and exceeding the high end of our guidance range.

“Strong operational execution drove a 30% increase in adjusted earnings affirming the strength of our core strategy to create demand that outpaces measured capacity growth through outstanding guest experience efforts coupled with innovative actions to increase consideration for cruising across all global markets.”

He added: “Strong operational results coupled with sustained strength in booking trends have mitigated the unfavourable $0.19 per share impact of fuel and currency moving against us since our last update.
“We remain on track to deliver double digit return on invested capital in 2018.”

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