Carnival Corp. celebrated a strong second quarter, which included record Q2 revenue, operating income and booking levels.
Net income for the quarter was $92 million, nearly a $500 million improvement from the same quarter last year.
"We're hitting on all cylinders, which is really gratifying," said CEO Josh Weinstein during Carnival Corp.'s Q2 earnings call on Tuesday.
Net income fell about $350 million short from the equivalent period in 2019, prior to the pandemic. That's because Carnival Corp.'s interest expense is a lot higher now, a result of the loans taken during during the pandemic to keep the company afloat while it wasn't allowed to operate cruises. Interest expense was $450 million in the second quarter, compared with $54 million in Q2 2019.
The company is not in a position to bring back dividends, Weinstein said, adding the company has "a lot of work to do."
Carnival Corp.'s booked position for the rest of the year is the best on record for both price and occupancy, Weinstein said, although he did not offer percentages. The booking curve is longer than it's ever been in North America, and in Europe it is the longest it's been in the last 15 years.
Q2 revenue reached $5.8 billion, an all-time company high for the second quarter. Operating income reached $560 million, nearly five times higher than a year ago.
With the healthy quarter, Carnival Corp. raised its expectations for full-year net yield and adjusted net income, noting continued strong demand. Weinstein said there was "unprecedented" demand for 2025 and beyond.
"The positive trends we saw in the second quarter are expected to continue in the third," said CFO David Bernstein.
While not a "blowout" quarter, Carnival Corp.'s Q2 was still a legitimate period for exceeding and raising expectations, said Patrick Scholes, a securities analyst from Truist Securities.