Carnival Outlook Solid Despite Baltimore Bridge, Red Sea

The Carnival Celebration cruise ship docked at the cruise terminal at Port Miami in Miami, Florida.

(Bloomberg) — Carnival Corp. slightly raised its outlook for 2024 amid record setting demand for cruises. However, the company also citied a negative impact related to the collapse of Francis Scott Key Bridge in Baltimore and is continuing to feel the effects of conflict in the Red Sea region.

Adjusted earnings before interest, tax, depreciation and amortization for 2024 is now expected to be $5.63 billion, the company said in a statement. Previously, Carnival saw about $5.6 billion, while analysts had estimated $5.64 billion.

“Even with less inventory available for the remainder of the year, booking volumes hit an all-time high, driven by demand for 2025 sailings and beyond,” Josh Weinstein, Carnival’s chief executive officer, said in the statement.

The company estimated the collapse of the Key Bridge in Baltimore — which was struck by a container ship early Tuesday morning — will negatively impact ebitda and net income by $10 million this year.

In a separate statement, the cruise operator said it will temporarily move its Baltimore operations to Norfolk, Virginia, including a seven day trip scheduled later this month.

Carnival is also facing disruptions in the Red Sea. In January, the cruise operator moved to reroute itineraries due to transit that route due to repeated missile attacks by Houthi militants on vessels in the area.

Changing those trips will cost $130 million or 9 cents per share this year, slightly higher than previously estimated.

The stock fell about 3% at 10:20 am in New York. Peers Royal Caribbean Cruise Ltd. and Norwegian Cruise Line Holdings Ltd. both traded higher before paring gains.

(Updates with Carnival moving Baltimore operations in 5th paragraph, share prices in 8th paragraph.)

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