Solid Customer Appetite for Travel Remains, but Carnival's Profitability Pressured by Debt Service

Carnival remains the largest company in the cruise industry, with nine global brands and more than 90 ships at the end of fiscal 2022. The global cruise market has historically been underpenetrated, offering cruise companies a long-term demand opportunity. Additionally, prior to the pandemic, the repositioning and deployment of ships to faster-growing and under-represented regions like Asia-Pacific had helped balance the supply in high-capacity regions like the Caribbean and Mediterranean, aiding pricing. However, international travel has lacked consistency as a result of COVID-19, which could spark longer-term secular shifts in consumer behavior, challenging the economic performance of Carnival over an extended horizon.