Carnival Corporation (CCL) stock was up more than 4% today after the world’s largest cruise operator reported a beat on earnings and said that advance cruise bookings in 2016 are ahead of previous years.
The cruise giant reported earnings of 50 cents per share on revenue of $3.71 billion, sending the stock up just under 4% to close at $52.41 per share. Carnival gave three reasons for the increase in earnings:
- Advance bookings for the first three quarters in 2016 are well ahead of advanced bookings in 2015.
- Cruise fares are have risen and the company has offered fewer last minute discounts.
- Fuel prices fell by 46% in the 4th quarter of 2015.
Arnold Donald, CEO of Carnival Corporation, said “As we had anticipated, with less inventory remaining for sale, we have begun to sell at higher prices than the same time last year, particularly close to departure, affirming our expectation of continued yield improvement in 2016”.
Carnival Corporation is the largest travel and leisure company in the world operating the the following 10 cruise brands: Carnival Cruise Line, Princess Cruises, Holland American Line, Fathom, Seabourn, Costa Cruise, Cunard, AIDA Cruises, P&O Cruises (UK), and P&O Australia.