Carnival (NYSE: CCL) shares fell 20% in later morning trading Friday after the company reported third-quarter earnings highlighting rising costs linked with inflation, supply chain mishaps, and continued maintenance of health and safety measures.
The British-American cruise operator reported a net loss of USD0.65 a share on revenue of USD4.3 Billion, compared to the previous year’s loss of USD2.50 a share. Nevertheless, operating costs and expenses totaled USD3.4 Billion throughout the quarter, higher than costs of USD1.6 Billion in the third quarter of 2021.
Carnival Corporation & plc’s Chief Executive Officer Josh Weinstein commented, “The well-being of the Caribbean region, Florida, and other states still in the path of Hurricane Ian is very important to us. On behalf of Carnival Corporation, I would like to extend our deepest concern for those affected by Hurricane Ian and Fiona, some of whom are our own employees, travel agent partners, destination communities, and loyal guests.”
Weinstein noted, “During our third quarter our business continued its positive trajectory, achieving over $300 million of adjusted EBITDA and reaching nearly 90% occupancy on our August sailings. We are continuing to close the gap to 2019 as we progress through the year, building occupancy on higher capacity and lower unit costs.”
Cruise companies are struggling with massive debts amid Covid lockdowns and rising interest rates. Additionally, Carnival reported USD1 billion in principal payments for 2022 and a total of USD9 Billion due by 2025.