Carnival Corporation says it is seeing “good, solid” pricing for cruises around world during the second half of 2022.
The world’s largest cruise company unveiled its first-quarter financial results on Tuesday and said it prices for the second half of 2022 will be higher than the same period in 2019, before the pandemic, with or without future cruise credits (FCCs).
Furthermore, cumulative advanced bookings for the first half of 2023 continue to be at the higher end of the historical range and at higher prices, with or without FCCs, compared to 2019 sailings.
The cruise giant reported an adjusted net loss of $1.9 billion for the first quarter of 2022, compared to losses of $2.6 billion for the fourth quarter of 2021 and $2 billion for the same quarter last year.
Speaking on a conference call after the results announcement, chief financial officer David Bernstein said itineraries in the Mediterranean, Caribbean and other parts of the world are seeing “good, solid booking trends” with “good, solid pricing” and “good volumes”.
“Demand is there and we are seeing the volume,” he commented.
The company has axed calls at St Petersburg because of the Russian invasion of Ukraine but these are being switched to other ports, and represent just 4.6% of capacity for the rest of this year.
Asked if customers are reining in their spending onboard ships, president and chief executive Arnold Donald said: “There is no sign of a slowdown in onboard spend; it continues to be healthy around the world.
“Overall, spending is considerably up and will continue.”
Revenue per passenger cruise day (PCD) for the first quarter of 2022 increased by about 7.5% compared to a strong 2019, thanks to “exceptionally strong” onboard and other revenue.
“Pricing is strong and we are able to maintain that price,” said Donald.
Bernstein added that occupancy is increasing each quarter and cruises still offered good value compared to land-based holidays.
Commenting on the impact of future variants of Covid, Donald said society is “better prepared and better understanding”.
“More people are vaccinated, that’s the biggie,” he said.
“Overall, society is getting used to it, as long as hospitalisations do not ramp up, or worse.”
The company predicts it will make a profit by the third quarter, and highlighted the ‘material impact’ of the conflict in Ukraine and fuel prices.