Carnival reports smaller loss, revenue up

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Carnival reports smaller loss, revenue up

The Carnival cruise ship Sunrise is seen docked at Miami Port, Miami Port.

NEW YORK Reuters -- Carnival Corp is expected to report a smaller loss and a spike in revenue when it announces second-quarter results on Friday, but bargain-basement prices for some cruises could squeeze the cruise operator's margins.

Analysts believe that the Miami-based company will report a loss of $1.17 a share compared to a year ago's loss of $1.80 per share. Revenue was seen at $2.77 billion, from $50 million when cruises were grounded in the pandemic, according to data from Refinitiv.

Your typical Carnival, Royal Caribbean or Norwegian Cruise this summer to the Caribbean is about as cheap as we've seen it, according to Truist Securities lodging and experiential leisure analyst Patrick Scholes.

He said that cruises are more likely to discount rooms closer to departure dates due to COVID 19 testing protocols and the fact that 13% more ships are at sea than pre-pandemic.

The company's gross profit margin was forecast to be around 11% for the quarter, a figure that was more than 30% before the epidemic, according to Refinitiv data.

The growing number of cruise discounts and deals is favouring travelers, who are facing inflation at 40 year highs.

An interest in cruise vacations this summer is rising compared to the same period in 2021, according to Tripadvisor.

In June, bookings increased by 60% compared to June 2021 and the average cost of a five-night Caribbean cruise for two dropped from $3,000 to $2,000 during the same time period, according to Cruise Critic data.

Expedia has seen an increase in last minute bookings. Trips booked within 90 days of scheduled departure have gone up by 8% compared to the summer of 2019 according to a spokesperson for Expedia Group.