Carnival raises annual profit forecast on strong cruise demand, warns of volatility

This undated photo provided by Carnival Corp. shows the 710-passenger Adonia ship. (Carnival Corporation / AP)

Carnival Corp. on Friday raised its annual profit forecast on resilient customer spending even as it warned of “heightened macroeconomic volatility” amid escalating trade wars.

Although customers have been more than willing to book premium voyages and splurge on board, U.S. President Donald Trump’s recent tariff policies could increase inflation further and hinder consumer spending on discretionary activities.

“Even with our resilience and strong visibility... we aren’t taking the current backdrop lightly,” Carnival CEO Josh Weinstein said on a post-earnings call.

Carnival forecast current-quarter adjusted profit of 22 cents per share, just shy of analysts' average estimate of 23 cents, according to data compiled by LSEG.

Shares of the company were down 2% in early trading.

Smaller rival Viking Holdings VIK.N has also flagged softer revenues for February, reflecting macroeconomic uncertainties.

Travel group AAA in late January forecast that cruise vacation passenger growth was likely to cool off after seeing a post-pandemic boom.

Carnival, however, expects occupancy for 2025 to be in line with the previous year’s record levels.

It sees fiscal 2025 adjusted earnings per share of about US$1.83, compared with its previous forecast of about US$1.70.

On an adjusted basis, Carnival reported a profit of 13 cents per share for the first quarter ended February 28, compared with analysts' average estimate of 2 cents.

Revenue came in at US$5.81 billion, compared with analysts' average estimate of US$5.75 billion.

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Reporting by Neil J Kanatt in Bengaluru and Doyinsola Oladipo in New York; Editing by Shinjini Ganguli.