The world's largest cruise shipowner Carnival Corporation & plc prioritizes the safety and security of its guests and crew, actively monitoring developments in the Red Sea region.
After careful consideration and consultation with global security experts and government authorities, Carnival has chosen to change/reroute itineraries for 12 ships across its 7 brands, originally slated to cross the Red Sea until May 2024. This adjustment is anticipated to impact adjusted earnings per share by US$0.07 to US$0.08 for the full year 2024, primarily concentrated in the second quarter.
Despite this rerouting decision, booking trends remain unaffected, and there are no scheduled Red Sea/Suez Canal transits until November 2024.
Carnival Corporation & plc reports a strong start to the wave season, surpassing expectations with record-high booking volumes since November. For 2024, the company maintains its best booked position to date, with pricing (in constant currency) and occupancy significantly higher compared to 2023 levels. Nearly all slots for the first half of 2024 are already reserved. The company anticipates that sustained robust bookings will offset the impact of the Red Sea rerouting throughout the year.
Furthermore, the company has announced the redemption of the outstanding US$571 million, 9.875% second-priority senior secured notes due 2027, effectively eliminating all remaining second lien debt. This redemption aligns with previous guidance from December and underscores the company's commitment to utilizing its cash flow strength to reduce interest expenses and leverage, as it progresses towards achieving investment grade credit metrics.