The boss of Carnival Corporation has said his company is “recession resilient” thanks to pent-up demand for cruising.
Speaking as he unveiled second-quarter results for the cruise giant, he said: “Even if there was a global recession, we are recession-resilient.
“There is tremendous pent-up demand, which there has not been in the past.”
In the Q2 update, for the three months to the end of May, the company said the pandemic and its ongoing effects, inflation and higher fuel prices are having a ‘material impact’ on the company’s business.
Donald also highlighted that people’s savings are high and unemployment rates are low, and customers are prioritising their “spending on experiences over spending on things”.
“We are an attractive value proposition relative to land-based alternatives,” he added.
Donald also praised the role of travel agents as being “more critical than ever”.
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Revenue for the quarter was $2.4 billion, compared to $50 billion year-on-year – but the company made a net loss of $1.8 billion during Q2, compared to $2 billion in the same period of 2021.
Occupancy in the quarter was 69%, an increase from 54% in the first quarter. For June, Donald said the cruises were approaching 80% occupancy.
He also hailed the lifting of Covid test requirements for flights to the US, saying it will help bookings with a longer lead-in time, for 2023 and beyond.
Furthermore, he said the company was at an “inflection point” and on a “positive trajectory”.