With Robust Advance Bookings, Carnival Is Set for Rising Cash Flow Generation

Carnival remains the largest company in the cruise industry, with nine global brands and 92 ships at the end of fiscal 2023. The global cruise market has historically been underpenetrated, offering cruise companies a long-term demand opportunity. Additionally, the ability to reposition and redeploy ships to faster-growing and underrepresented regions like Asia-Pacific had helped balance the supply in high-capacity regions like the Caribbean and Mediterranean before the pandemic, a factor that the firm can again choose to utilize to help optimize forward pricing. Although European demand and occupancy is converging on normalized levels, we believe there is still support for improving economic performance at Carnival.