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Carnival forecasts current-quarter profit below estimates on higher fuel costs

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June 23, 2026 9:41 AM EDT

FILE PHOTO: The Queen Mary 2 cruise ship by Cunard Line, owned by Carnival Corporation is seen docked at Brooklyn Cruise Terminal in Brooklyn, New York City, U.S., December 20, 2021. REUTERS/Andrew Kelly/File Photo

June 23 (Reuters) - Carnival Corp ‌on Tuesday ​forecast third-quarter ​profit below estimates, as elevated fuel costs and geopolitical tensions continued to squeeze margins, sending its shares down ‌about 5%.

Cruise operators, heavily reliant on fuel oil and ⁠marine gas oil, have been grappling with a tougher operating environment after the ‌Middle East conflict heightened concerns ‌over prolonged supply disruptions.

Carnival also posted weaker-than-expected second-quarter revenue and said that geopolitical volatility weighed on bookings, particularly for European itineraries ​in the Mediterranean, which were closest to the conflict.

The company - the only major U.S. cruise operator that typically does not ⁠hedge fuel - said it was "overcoming extreme geopolitical headwinds and nearly 30 percent higher fuel costs" ​during the quarter.

Its revenue of $6.66 billion for the quarter ended May 31 came in below analysts' estimates ​of $6.69 billion, according to data compiled by ‌LSEG.

However, Carnival said its booking position for the second half of the year was higher than last ⁠year, helped by strong demand from wealthier travelers.

Carnival's quarterly adjusted profit of 41 cents per share topped estimates of 35 cents.

"Our second-quarter operational outperformance ⁠and accelerated cost efforts are offsetting the moderation we've incorporated into our back ​half outlook, given the impact of the prolonged conflict," CEO Josh Weinstein said on a post-earnings call.

The company expects quarterly adjusted earnings per share to ‌be about $1.35, compared with estimates of $1.42.

It forecast annual adjusted cruise costs, excluding fuel, to be about 2.4% ‌on a constant currency basis, compared with its prior projection of ⁠3.1%.

Peers Royal Caribbean and Norwegian ‌Cruise Line Holdings ​also flagged pressures from fuel costs during their first-quarter reports.

(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by ‌Maju Samuel)


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