Carnival Raises Profit Forecast

Carnival Corp raised its annual profit forecast on Monday, leaning on strong demand and higher ticket prices for its cruise vacations to offset mounting costs.

The cruise operator has been investing heavily to offer more unique and private experiences by expanding its portfolio to meet strong demand for exclusive destinations. These included a $600 million investment in Celebration Key, an ambitious private resort destination on Grand Bahama, to help maintain its competitive edge.

Bundled packages, perks such as drinks, Wi-Fi, and excursions have encouraged guests to spend more onboard, further boosting the company's revenue.

However, cruise operators are grappling with higher fuel costs and expenses related to dry docking of ships for maintenance.

"We are expecting to do more work during our 2026 dry docks. The additional expenses will impact our overall year over year assumptions by up to 1 percentage point," CFO David Bernstein said on a post earnings call.

There is also a risk of consumers pulling back on discretionary spending, as inflation and tariff-driven uncertainty weigh on travel budgets.

Shares of the company were down about 5% on Monday as Carnival also expects cruise costs for the year, excluding fuel, to rise 3.3%. The stock has risen