Revenue improvement
Narrower losses
In Q1 2023, Carnival delivered a net loss of $693 million, or $0.55 per share, on a GAAP basis. Adjusted net loss was $690 million, or $0.55 per share. This was narrower than the guidance range of net loss of $750-850 million provided in December.
Strength in bookings
Carnival continues to see an improvement in demand, with the company achieving its highest-ever quarterly booking volumes in its history in Q1. The booking window has been returning to historical patterns, which is indicative of a strengthening demand environment. The booking curve for the North America and Australia (NAA) segment was similar to the peak levels in 2019 while for the Europe segment, it was over 80% recovered from 2019 levels.
On its quarterly conference call, Carnival stated that for the remainder of 2023, its cumulative advanced booked position is at higher ticket prices normalized for future cruise credits (FCCs) compared to strong 2019 pricing with booked occupancy that is solidly in the higher end of the historical range.
Outlook
For the full year of 2023, Carnival expects capacity to grow 4.5% compared to 2019. Occupancy is expected to be 100% or higher compared to 2019. In terms of pricing, the company expects net per diems to be up 3-4% on a constant currency basis compared to 2019 while on a reported basis, it is expected to be up 1-2%.