Financial Performance - Carnival Corporation achieved a record Adjusted EBITDA of $2.8 billion in Q3 2024, up $600 million compared to Q3 2023 and $160 million above June guidance[14] - Net yields increased by 8.7% in 3Q 2024 compared to 2023[11] - Adjusted cruise costs excluding fuel per ALBD decreased by 0.3% in 3Q 2024 compared to 2023, outperforming the guidance of approximately 4.5% increase[11] - The company delivered over 60% more Net Income than in 2023 and achieved double-digit Adjusted ROIC as of the end of 3Q[11] - Full year 2024 Adjusted EBITDA guidance improved to approximately $6.0 billion[23] - Full year 2024 Adjusted net income/(loss) guidance improved to approximately $1.76 billion[23] Bookings and Customer Deposits - 2025 bookings are hitting new historical highs with price improvements compared to the prior year[24] - Customer deposits reached a record $6.8 billion in 3Q 2024, up $1.9 billion from the prior record of $4.9 billion in 3Q 2019[26] Debt Management - Carnival Corporation prepaid over $7 billion of above-average interest rate debt since the beginning of 2023[32] - The company prepaid another $625 million of debt since June 2024[34] - Increased borrowing capacity under revolving credit facility by approximately $500 million, bringing the total undrawn commitment to $3.0 billion[34] Sustainability - The company is progressing towards its 2026 SEA Change targets, averaging more than two-thirds of the way there across the three metrics after just one year[37]

Financial Performance & Outlook - The company achieved record full-year operating results in 2024[2, 11] - The company expects 20% earnings growth in 2025[2, 16] - The company anticipates hitting the 2026 SEA Change EBITDA target one year early[2, 16, 45] - Q4 2024 adjusted EBITDA reached $1.22 billion, exceeding the guidance of approximately $1.14 billion[12] - Full year 2024 adjusted EBITDA reached $6.1 billion, outperforming the December guidance of approximately $5.6 billion by $500 million[13] - Full year 2024 adjusted net income reached $1.9 billion, exceeding the December guidance of approximately $1.2 billion by $700 million[13] Demand & Bookings - Net yields in FY 2024 increased by 11% compared to 2023, outperforming the December guidance of approximately 8.5%[13] - Adjusted cruise costs excluding fuel per ALBD in FY 2024 decreased by 3.5% compared to 2023, outperforming the December guidance of approximately 4.5%[13] - Customer deposits reached a record of $6.8 billion in 4Q 2024[40] Debt Management - The company achieved approximately 2.5 turn net debt to adjusted EBITDA improvement in 2024[44] - Debt prepayments exceeded $3 billion[44]

Core Insights - Oceania Cruises is enhancing its culinary reputation by appointing Food & Wine Best New Chefs alumni as godparents for its new ship, Oceania Allura, marking a first in the cruise industry [1][2] - The new ship, Oceania Allura, will offer an elevated onboard experience with exceptional service and a focus on high-quality cuisine [2][3] Group 1: Culinary Innovation - Oceania Allura will feature over 270 new recipes, a Culinary Center, and a Chef's Studio, alongside the return of the French restaurant Jacques and new Nikkei dishes in the pan-Asian venue Red Ginger [3] - The ship's christening ceremony is scheduled for November 13, 2025, in Miami, Florida [3] Group 2: Unique Experiences - Oceania Cruises is redefining the role of a ship's godparent and emphasizes its identity as a cruise line for food enthusiasts [4] - The first-ever Best New Chefs Cruise will take place from August 18 to 28, 2025, featuring special menus and cooking demonstrations [5] Group 3: Company Overview - Oceania Cruises is recognized as the leading culinary- and destination-focused cruise line, operating eight luxurious ships with a maximum capacity of 1,250 guests [6] - The cruise line offers itineraries that span over 600 ports in more than 100 countries, with voyages ranging from seven to over 200 days [6]

Consumer Sentiment and Travel Industry Outlook - Consumer sentiment rebounded sharply in May, showing a nearly 16% increase from the previous month, driven by a moderating trade war and tariff reductions [5][6] - Despite the rebound, the current sentiment index of 60.5 remains significantly below the pre-pandemic levels and the post-election bump [5][6] Travel Sector Performance - The travel industry, including airlines, hotels, and cruise lines, has faced challenges in 2025, with many companies missing earnings expectations and revising guidance downward [7][8] - The rebound in consumer sentiment is expected to benefit the travel sector, particularly during the summer [6] United Airlines - United Airlines reported strong Q1 earnings, surpassing EPS projections, and is one of the only two airlines to turn a profit in Q1 [9][10] - The company has better net margins and cash flow per share compared to competitors, trading at a forward P/E of 5.1, indicating reasonable valuation [10] Royal Caribbean - Royal Caribbean Cruises reported a net margin of 19.38% in Q1, significantly higher than its competitors, and was the only cruise line to turn a profit [12][13] - The company also pays dividends, currently yielding 1.12%, making it an attractive option in the cruise line sector [13] Booking Holdings - Booking Holdings reported strong Q1 earnings, exceeding expectations and raising guidance, positioning itself as a leader in the online travel reservation space [15] - The company has superior metrics compared to its largest competitor, Expedia, including higher EPS and profit margins [15]

Group 1 - Carnival Corporation is set to release its second-quarter earnings results on June 24, with analysts expecting earnings of 24 cents per share, an increase from 11 cents per share in the same period last year [1] - The company is projected to report quarterly revenue of $6.21 billion, compared to $5.78 billion a year earlier [1] Group 2 - On June 13, Carnival announced a new $4.5 billion revolving credit facility to enhance its financial capacity [2] - Following this announcement, Carnival shares rose by 0.7% to close at $23.77 [2] Group 3 - Barclays analyst Brandt Montour maintained an Overweight rating and raised the price target from $26 to $30 [4] - Stifel analyst Steven Wieczynski maintained a Buy rating and increased the price target from $31 to $33 [4] - Citigroup analyst James Hardiman maintained a Buy rating and raised the price target from $25 to $28 [4] - Loop Capital analyst Laura Champine maintained a Hold rating and increased the price target from $21 to $22 [4] - Truist Securities analyst Patrick Scholes maintained a Hold rating but reduced the price target from $30 to $27 [4]

Core Points - Cunard is celebrating its 185th anniversary with a special sale offering fares starting at $899 per person and $185 in Onboard Credit per stateroom, available for 185 voyages [1] - The sale is valid from now until July 9, 2025, covering select voyages from 2025 to 2027 across various destinations including Alaska, the Caribbean, and Europe [1][2] - Cunard's flagship Queen Mary 2, Queen Victoria, the newly transformed Queen Elizabeth, and the newest ship Queen Anne are featured in this promotion [1][2] Company Overview - Cunard is a luxury British cruise line with a history dating back to 1840, known for providing exceptional experiences and fine dining [4] - The company operates four ships: Queen Mary 2, Queen Elizabeth, Queen Victoria, and Queen Anne, which entered service in May 2024 [5] - Cunard is owned by Carnival Corporation & plc since 1998 and is based in Southampton [6] Upcoming Voyages and Events - Queen Elizabeth will sail from Seattle for the first time this summer, offering 7 to 11-night voyages to Alaska, including scenic cruising through Glacier Bay National Park [5] - The ship will also operate winter cruises from Miami to the Caribbean from October 16 to April 14, visiting various ports [5] - Queen Mary 2 will host the Transatlantic Fashion Week from October 31 to November 7, 2025, featuring designer Christian Siriano and fashion icons [5]

Core Insights - Oceania Cruises is enhancing its culinary offerings by introducing a new Nikkei cuisine menu, reflecting the fusion of Japanese and Peruvian culinary traditions [1][2][4] - The new menu items will debut on the Oceania Vista and will be available on the Oceania Allura next month, with plans to roll out across the fleet by early 2026 [3][4] Company Overview - Oceania Cruises is recognized as the world's leading culinary- and destination-focused luxury cruise line, operating eight small ships with a maximum capacity of 1,250 guests [10] - The cruise line emphasizes high-quality culinary experiences, featuring The Finest Cuisine at Sea and a commitment to using the best ingredients and talented chefs [8][10] Culinary Innovation - The introduction of Nikkei dishes is a response to guests' growing interest in bold flavors and diverse culinary experiences [5] - The new menu includes highlights such as Ceviche Nikkei, Peruvian-Style Beef Short Rib, and Yuzu Cheesecake, showcasing a blend of traditional and innovative flavors [6][8] Culinary Leadership - Oceania Cruises boasts a culinary team led by two Executive Culinary Directors, both of whom are Master Chefs of France, ensuring high standards in culinary excellence [8][10] - The cruise line's commitment to culinary innovation is driven by guest feedback and a desire to introduce new experiences [5][4]

Core Viewpoint - The company, Carnival Corp, is effectively managing its substantial debt incurred during the COVID-19 pandemic, presenting a compelling investment opportunity despite market skepticism [1][5][19]. Company Overview - Carnival Corp operates a fleet of 29 ships and owns 93 different vessels across various brands, including Princess, Holland America, and Cunard [4][5]. - The company has accumulated approximately $24 billion in long-term debt due to the pandemic, resulting in annual interest payments of around $2 billion [5][16]. Financial Performance - In the first quarter, Carnival reported record revenue of $5.8 billion, a 7.5% increase year-over-year, and doubled its operating income [7][8]. - Advanced bookings for the fiscal year are at record highs, leading to total customer deposits of $7.3 billion [8]. - The company raised its earnings per share guidance from $1.70 to approximately $1.83, with analysts projecting a 4% sales growth for the year [8][19]. Industry Trends - The cruise industry is experiencing a resurgence, with the Cruise Lines International Association forecasting 37.7 million ocean cruise passengers in 2025, a 9% increase from the previous year [13]. - The leisure cruise market is expected to grow at an annualized rate of nearly 6% through 2034, driven by increasing demand and limited capacity [15]. Debt Management - Carnival's interest payments are projected to decrease from over $2 billion in 2023 to under $1.8 billion in 2024, as the company continues to pay down its debt [17][18]. - The company has reduced its long-term debt by nearly $2.5 billion over the past year while still reporting profits [17]. Market Position - Carnival's stock is trading at less than 13 times its earnings guidance, presenting a significant value opportunity compared to its profitability [19]. - Analysts maintain a strong buy rating for Carnival, with a consensus price target of $27.69, indicating a potential upside of nearly 20% from its current price [20].

Core Points - Carnival Cruise Line is set to launch a new loyalty program named Carnival Rewards™ in June 2026, introducing a points-based system with personalized perks and new ways to earn status [1][2][3] Group 1: Program Features - The Carnival Rewards program will feature a dual-earning structure, allowing guests to accumulate both Carnival Rewards points and status qualifying stars, moving away from the current model that focuses solely on the number of nights sailed [3][4] - Guests will earn points on eligible purchases, including cruise fares and onboard activities, providing more opportunities to achieve higher status levels based on overall spending [3][4] - The program will be closely linked to the Carnival Rewards Mastercard, enabling cardmembers to earn points and status more rapidly through everyday spending [3][4] Group 2: Transition and Status Retention - Existing loyalty status from the current Very Important Fun Person (VIFP) program will carry over into the new Carnival Rewards program for a two-year period, ensuring that current members' status is honored [5] - Diamond members will retain their status for an extended period of six years, through May 31, 2032, allowing ample time for members to adapt to the new rewards system [5] - Current cardmembers will have their Fun Points converted to Carnival Rewards points upon the launch of the new program [5] Group 3: Customer Engagement and Information - Carnival Cruise Line will provide detailed information and tools for guests to track their status and point balances, as well as tips to maximize rewards under the new system [6] - Current loyalty members will receive updates via email throughout the transition process leading up to the launch [6]

Core Insights - Royal Caribbean is set to enhance its offerings in 2026 with the introduction of three newly amplified ships: Ovation, Harmony, and Liberty of the Seas, featuring bold new experiences and expanded dining options [1][6][14] Group 1: Ship Enhancements - Ovation of the Seas will include a revamped pool deck, new whirlpool, and a variety of international dining options, alongside returning favorites like the FlowRider surf simulator and SeaPlex [7][8] - Harmony of the Seas will feature a Caribbean-inspired pool deck, over 20 dining venues, and an expanded nightlife experience with the largest Casino Royale in the fleet [9][10] - Liberty of the Seas will offer a reimagined pool deck, new Royal Escape Room concept, and diverse dining options including a new Starbucks [12][13] Group 2: Destinations and Experiences - Ovation will provide 7- to 13-night Alaskan adventures starting in spring 2026, including immersive land experiences [8] - Harmony will operate 5- and 7-night Caribbean vacations starting winter 2026, visiting locations such as St. Thomas and Jamaica [10][11] - Liberty will sail from Southampton in summer 2026, offering 7-night adventures to European destinations like the Norwegian fjords and Bruges [13] Group 3: Royal Amplified Program - The enhancements are part of Royal Caribbean's Royal Amplified program, which aims to elevate guest experiences through innovative ship designs and exclusive culinary offerings [6][14] - The program has seen success with previous amplifications, leading to increased guest satisfaction and a commitment to expanding the fleet and destination offerings [6][14]