Carnival PLC (LSE:CCL) third quarter update on Monday (30 Sep) comes on the back of a record second quarter with revenue up 18% helped by higher ticket sales and an uplift in onboard spending.
So far, worries over consumer spending have yet to show through into demand for cruises and an ageing population should prove a buffer, but with expectations high there is little room for error especially with Carnival’s problematic balance sheet.
Borrowings remain an ongoing issue with net debt at US$27 billion still higher than the company’s total market value.
Reducing that remains one of its main focuses, but that requires trading to remain strong.
In June, Carnival said it expected third-quarter earnings to be US$1.15, matching its forecast for the year overall.