Carnival (LSE:CCL, NYSE:CCL), the cruise company, will dock in with second-quarter numbers on Monday with its shares floating near one-year highs as it enjoyed its highest ever level of booking volumes amid a long-awaited rebound from its pandemic nightmare.
March's record first-quarter figures revealed revenues up 173% year-on year to US$4.7bn, at 95% of 2019 levels, with a net loss of US$693mln better than its December guidance.
Chief executive Josh Weinstein, who was promoted almost a year ago, said its ships are "well booked" for the remainder of the year at higher prices, adding that booking "continued to return to historical patterns, providing further confidence in the continued strengthening of the demand environment and facilitating improving revenue yields over time".
He expects a sequential improvement in each quarter in underlying profit (EBITDA) per available lower berth day (ALBD) compared to 2019.
And for the full year, the company expects adjusted EBITDA of US$3.9-4.1bn, including roughly US$0.5bn unfavorable impact from fuel price and currency compared to 2019.Occupancy of 100% or higher, returning to historical levels this summer
While the shares have almost doubled so far this year, they are still trading 64% below pre-pandemic levels and a "mountain of work" is left to do, said analyst Matt Britzman at Hargreaves Lansdown, leading with cutting debt.
The coming week's results next week will be "key", said Britzman, noting that investors have been promised full ships over the crucial summer season.
"That's essential if Carnival wants to return to positive underlying free cash flow for the full year."
He said the move towards larger, newer and more efficient ships "should give margins a push in the right direction as passenger numbers continue to recover".