Carnival trims annual loss forecast on high demand, ticket prices
(Reuters) -Carnival on Friday forecast a smaller annual loss than previously estimated and reported a third-quarter profit, benefiting from higher ticket pricing and robust demand for its cruise lines.
Shares of the company, which have risen about 75% so far this year, were up about 3% in early trade.
Carnival (NYSE:CCL) has been able to bump up ticket prices as consumers indulging in novel experiences and activities drove up demand for cruise operators such as Norwegian Cruise Lines and Royal Caribbean (NYSE:RCL).
That, along with steady on-board spending from customers, has helped Carnival soften the blow from steeper oil costs and the impact of unfavorable foreign exchange rates.
The company posted third-quarter profit of $1.07 billion, or 79 cents per share, compared with a loss of $770 million, or 65 cents per share, a year earlier.
It now expects annual loss per share between 12 cents and 4 cents, compared with its previous forecast for a loss between 20 cents and 8 cents.
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