Carnival Corporation & plc (CCL) 20 Dec 212021 Q4 Earnings call transcript

Good morning and happy holidays, everyone. Welcome to our business update conference call. I am Arnold Donald, President and CEO of Carnival Corporation & PLC and today, I'm joined telephonically by our Chairman, Micky Arison; as well as by David Bernstein, our Chief Financial Officer; and by Beth Roberts, Senior Vice President, Investor Relations. Thank you all for joining us this morning.

Now before I begin, please note that some of our remarks on this call will be forward-looking. you cautionary refer press in must release. I to statement the today's Therefore, a are ships make, way a fiscal year What difference we as end full operations year. guests back cruise clearly with serving XX now we the to our on up one year And from ago. one just ship, that's short We've our have and sailed us. XX,XXX since guests resuming to over already million counting members operations, and returned crew ships over X.X with

received These that while faced high not delivering virus and boosters. received an strong experience, protocols were yet light members guest in historically many Scores. ago, just when to the Today, we achieved evolving. exceptional spread have Net our team vaccines of with majority effective of Promoter were vaccines available still we've vast and have are year mitigate uncertainty and especially the accomplishments, the Now the one guests of

We have occupancy protocols toward enabling effective progress historical COVID-XX variant, its for and assessed the lows. to

our have build now as costs position continues start-up brand, Even that's booking. after this normally Cruise of In now to Carnival for the are stage, by date early strengthen. our year-end and book and a flow $X.X helping company, Total to level over the to fund prior published the XX%, Carnival its deposits both continues fact, generating variants at and customer cash meaningful grown and with on we approaching to occupancy the Cruise billion ship as fleet. growing, level outperform itineraries, from to to remaining Line operates occupancies which itineraries the strength. are similar Line Again, at are most that pricing near-term currently impact at

the of positioned to we Throughout by of to year and level and are that's aforementioned our planned have ended expected continue same ahead remainder ship last share profit. our improved environment where cash we we generation but cash build. it with spring, liquidity year, that historically the lion's customer With of and important deposits and capacity $X.X operation billion the the has. XXXX, significantly in seats, was liquidity said operating by flows dynamic certainly operating now we summer well flow as remain Importantly, essentially XX% we the the our of

has key optimize, of continue Of course, agility strength to landscape. and to we a this been ours, manage ever-changing given aggressively

the we Delta with variant now challenges. we have operational Omicron, near-term through demonstrated have and As navigated

case confidence booking While the position variants has consumer and recovered. our Delta of near-term the already volatility, corresponding their have some remained book on effect variant, in and created resilient,

these have we return communities achieved our family, of that of the the in the our priority, well and At to Company members' the in important significant not same a lost not the compliance, our and our course, which well-being and shipboard always many end, and, our way and our milestones we've environmental for protection serve to of And That's guests, touch people top highest health, along team and is Carnival everyone. therefore, shoreside. responsibility service. our the operations have our safety we return to XXXX, fleet on sight on the we maximized path we to in service of our have time, return had Importantly, positioned clear and variants It withstand potential impact ultimate our XXXX. have to volatility spring is to guest plan full profitability. in

our our our essential a goals, member Compliance sustainability board with emphasizing training and them behaviors our Committee, improving culture incorporating compliance and compliance feedback. our report, valuable new our XXXX our everyday of the and real-time strong For into with on introduction and the sustainability to experience, our SASB to and ESG through building framework XXXX a and Board XXXX goals Directors aspirations, increased through of successful our development through ESG of TCFD addition by Board disclosure ethos and commitment example, addition in broadening our the achievement our bolstering incorporating with efforts, of that's

Mardi new resuming America, introduced is the Welcoming New including nine As MedallionClass destinations next expedition our with well de we'll ship, new global game focusing Barcelona, Turk, Princess, will over we and to brand, brands, MedallionClass another short Gras owned successful Seabourn over and changer operational LNG. our Venture delivering Discovery many and by world-class reopening milestones XXX,XXX Mahogany an Seabourn representing level And Carnival all operations. Premium the Cay, Princess our Gras brands, base namesake [indiscernible] Half its leading Koningsdam world, a exceptional in million efforts Grand the Bay, aboard since there and on as a with already across XXX-degree port course, a Princess Mardi spectacle Cruz ship, facilities. diverse new XXX brand, such and Amber our and all Statendam. sister countries, Enchanted Cruise operations. we submarines. areas Holland the employee welcome more at companies guests among Moon nothing Tenerife eight and of ultra-luxury for Nieuw operated to Cay, Princess are diversity of Cove, And welcome powered Line. very and experience in ships ship of more X.X team of early year. private inclusion Santa our every are most a efficient [indiscernible] Rotterdam; view are

introduced Iona, For by LNG. we powered also successfully the U.K.,

the Toscana sister take our AIDAnova. delivery several of will of Firenze we to Costa for Germany, And also For AIDAcosma, six the replace ships. LNG-powered Southern Europe, successful, highly ship, exit LNG-powered shortly less-efficient and Costa

to Gras, decarbonization world the the in with addition of Smeralda ships, have joined the Costa Costa Toscana Now our only AIDAcosma LNG, these only Mardi demonstrating be leading cruise and large by shortly, and currently edge ships five efforts. AIDAnova powered Iona, six new the

our ultimate of the solution. not LNG is for inherently step carbon environment, while a efficient, LNG positive is Now utilization is it the more XX% Costa's

net by have announced aspirations XXXX. We our zero

emissions in be zero is there to time, we while Now industry this at working end solution. of are the no our known part to carbon

We to continue in expect executing and strategies. carbon demonstrate have leadership to reduction

need consumption unit reducing fuel for are even the on decreasing today, offsets. our We carbon focused

ahead company, emissions, are XXXX working intensity decarbonization us enabled well absolute our our approximately only moving a schedule. based time. under an carbon peak to absolute positioned entire in hard direction. as in are capacity industry today, publicly deliverable cruise achieve to reach our despite a reduction emissions information, right XX% the belt, XXXX, we major and since in And goal Our is XX% our we that's while already available and by our we operator to the on that back And reduction have growth XX% carbon peaked way with that of are believe efforts that

efforts Now course at of in they $XXX to we decarbonization. million just existing addition an have as and a few, waste over the in other management, accelerate upgrades many list air efforts, to itinerary our goes ongoing To on. investment areas conditioning, include our optimization such fleet and name cutting-edge LNG of to technology lighting

actively by shore reach to power our XX% than increasing our power to are we of least at capabilities. equipped XX% fleet XXXX. Greater We and plan shore connect is to already

of develop the XX cruise for with first Now development leading we capability the to ships, helped and shore counting. ports power to date port

time, That the as synthetic To engine methanol cell ultimately development, in Also, ports well emissions our deliver battery shore projects fuel we forecasted fuels power Hamburg, to South pilot, on net consumption future low-carbon to and world. annualized and of an and and working We exit to are efficient achieve partnering as bio to as zero in assess expanding combined and the XX% less unit around are over with Germany. to on societies for full a with research cruise high-volume evaluate ships, maritime upon Miami, includes basis. fuel Hampton, ships. focused efforts, investing scale returning XX hydrogen, manufacturers operations, on and technology, fuel England options and are reduction classification these

significant on a path our to achievement decarbonization. that's Now

Our XXXX. compounded strategic XX capacity more efficient a a accelerate of overall, X.X% the assist and to to and fleet roughly with lowered annually left it's from growth effective more our XXXX through ships us exit

pre-COVID. from down X.X% annually that's Now

While and benefit We even enthusiasm exciting spread around constrained, of ships brands, enjoy plan. to restart enabling our we roster us from will drive capacity across our more capitalize structural demand pent-up growth from further experiences, is points XX% percentage guest this XXXX. new Due of mix enhanced our to premium richer to the new these increase priced in to X fleet ships. a benefit which will revenue of cabins, on balcony

will deliver Now new, these a efficient to XX of efficient reduction capacity in to ships ship we line. bottom deliver ships, return full more level return X% unit a of revenue generate will to improving efficient exit profitability will cost course, our to XX% larger, also our larger, the we expediting of before, enabling going cost, of ships, more as we more operations, forward, and coupled us capital. returning help the unit these as newly-delivered, nearly Upon to with consist structural less that on achieve mentioned benefit investment our

X% clearly strength to our impact we back Now an We quarter, flow to our initial investment-grade on our the resuming on of reduce the efficient impact fourth variant. are operating we of to indicated price Last per levels Delta we'll operations a we use we cash saw company Booking returned as said and we discussed path than quarter the more leverage cruise as booking near-term credit. the volumes we in November. August. our revenue volumes accelerated month despite of and in quarter in the would, And sequentially pre-Delta maintain XXXX. day passenger achieving higher fourth disruption,

comparable consecutive brand service. revenue of quarter with mentioned, In fact, PCD, to while the XX% occupancy offer improving more for its nearly those to capacity of Carnival experienced to Cruise we, return its I XXXX, are in as double-digit second where growth Line able itineraries

demand to for major was consider of strength cruise Now the benefit accomplished especially fundamental that's you advertiser. without a this the when in a product, testament our

announcement on undisrupted on campaign build highlight and week for holidays, is fun advertising this Carnival a launching activations to brand's That on Square time Day the Cruise. just with We the Year's expect New engineers last and including of Time campaign, the joy to Eve on [indiscernible]. over Christmas momentum its in

present experienced today, the XXXX. book something initial for some have first capacity measure. and half impact although intentionally to position the of we news a solid have also in difficult to Turning Omicron we That on variant, constrained bookings, that's near-term very said

build to the price. continue remain and we strong With the capacity, well XXXX. XXXX on and existing maintaining demand. early of demand into bookings remainder those are for achieving we limited with Bookings And focused

since pricing has it back improved half should despite And our for The variant. improve and book choppy, current continues, current the that's vaccine the of on dramatically summer. while improved advancements fact, In even since last XXXX next summer. of further rollouts last quarter, as environment, and trend therapies position Delta in the by

operations from second flow forward, So of XXXX. the remain profit during path to we consistently cash in looking a half generate the and second on of quarter deliver XXXX

believe Importantly, of generation efficient EBITDA cash resume on we double-digit stronger to and operations XXXX, above through generate dedication growth all company our as humbled we compared and we proactively teams and additional even throughout. proud beyond. times time, to the operations, cost and rate, have And capital. return despite consistently our deepest improved to in am driver members, been my our managing maximize very flow from in to XXXX that, we Carnival shoreside, to operating for the we've And Once potential be team a we capacity both way. positive structure. return deliver and express to very pause, go Throughout our an our I credit will accomplished challenging higher sustain full organization have our to I've collectively creating I the to the more modest forward over again invested by given seen primary cash greater who to move return value. to investment-grade I these appreciation shipboard shareholder to very and continue am

course, done couldn't overwhelming support from it without you. have we Of all of the

course, guests. Thank confidence port thank our David. to With wait communities. So welcome you can't and us once over thank again, our partners. And to your Once again, own stakeholders. and in that, destination Thanks investors your you other to for many valued we ongoing our support. to to you and you continued back agent Thank of on suppliers I for everyone the our turn to our will to board. call travel

fourth with today start on a operations with positive cruise flows. guest I'll Then along from update some summary booking up quarter followed by position. an provide Arnold. color a of you, on operations, our review of cash some insights Thank trends finish into and financial cash our our with I'll

turned operations indicator other health so leading am happy driving trends from clearly cash in November of positive ahead indication our I and that driven that solid increases a changes. our our Turning With customer higher, our of leading to We all business. by the deposits operations, EBITDA working capital to report in trends of the cash from quarter of is are booking month site. deposits way, know positive booking within fourth the customer previous

few and next months, level ships as occupancy we our expect grow as on to service return contributions the Over percentages. to ship cash we more build

be operations and of will be XXXX. from ships, almost restart-related over next the dock dock spending dry of our EBITDA cash the in half during and expenses, few months fleet, XX impacted dry However, will by X/X first as fiscal

consistently monthly operations turn combined, during expect Given cash of EBITDA XXXX. to quarter we positive factors both second all monthly these the from and fiscal

two a halves. tale be will So XXXX of

of makes of profit the so first a second While we XXXX. we the to half good for expect say it XXXX, the feel half net expect me loss for

at let's operations. cruise look guest Now

the During restarted ships. quarter, XX we fourth successfully

During so will seven the X/X in with month restart of an of fleet will celebrating capacity we New service. December, Year's be over on additional our we ships, Eve

guest seasonally strong spring, Our remainder a for fleet plans period. call putting our operations great cruise of for in summer us position by to the restart the

ships quarter, the was to despite just XX% in in improvement was the quarter we last during For fourth from Delta the peak slowdown season, four-point the the fourth quarter summer occupancy and the across XX% variant. the over service bookings achieved a prior that

which the carried quarter. guests number During the over fourth third the of in guests X.Xx carried we we XXX,XXX quarter, was

significantly the to part despite quarter great XXXX executed shops, other bundled constraints well led the fourth of and diems on had Revenue onboard board. canceled to compared for versus and the with from in growth on diems again, due well and increased elevated fourth as XXXX XXXX, Net the per offering. scores. to brands in Promoter pause. as Increases guests in on our continuing Scores cruises revenue pre-COVID the per sides itinerary spa casino, the XXXX up passenger credits way levels at cruise the during Our extremely Atlantic. by onboard the day compared fourth Once were quarter onboard quarter a current X% packages in bar, utilized per Internet other We both strong

options. revenue bundled chosen the benefit the as during more past two and end, guests we our will other have and the more Over bundled years, package we onboard we offered and and see half the have did these of packages In of second XXXX.

between As revenue a revenue blurred. result of these bundled packages, ticket the passenger line and is onboard

we purposes, metrics. guests our by the accounting the For judge total two to by price paid our performance cruise is way reference best to the the revenue total between allocate Therefore, categories.

to the in fleet with during cruise cost our million; and quarter, X.X over spot the million. will in without $XX because spreading from XXXX. smaller, being quarter, are based you the higher the available during the and for called, By these we results, For XX will is XXXX or who fuel ton. of fleet ALBDs status be million. leaving be half days per XXXX, that ALBD and the end The ships approximately are our We a and be restart-related to do half, those we of million restart benefit fleet. that will for fiscal will tons. ALBDs. expenses costs for quarter, portion the more in be of million did on point significantly price $XX.X consumption the of for of $XX quarter, schedule they due protocols XXXX be net in I commonly our health quarter, projecting out inflation, first fourth than ALBDs Fuel future fuel costs are berth and million; lower fiscal first safety costs pause for less first cost the that the of the current are less-efficient XXXX, the get even; pause approximately the reoccur as for planned not modeling Remember, status enhanced will a $XX.X per second anticipate we want of XXXX expenses, metric portion blended most third will metric despite $XX.X to $XXX maintaining

depreciation In further XXXX, be while be interest and around expense, net expect likely $X.X refinancing, billion without fiscal amortization addition, we billion. $X.X for to to is any

Next, a flows. I'll provide quarter summary our cash of fourth

supported billion, offset by simply added three. holiday $XXX to was consecutive During XXXX the the quarter increases The another of the fourth added that an fourth $X.X $XXX at lower quarter mentioned, of at notes to cash average the we than from million. of Working $X.X $X.X month we This previously a burn the and refinance was rate liquidity increase quarter quarter. in third monthly capital third of other expenditures. by planned, should All was billion times in billion, Completion our rate the somewhat to million senior be principal total. in increase million better XXXX, we noted driven was increase $X our deposit billion these liquidity average the Italian fourth $X.X debt increased totaled unsecured per the The customer by $X.X a end maturities. It which our $XXX contributed XXXX billion by capital government of by million. burn saw cash the net deposits. with items some refund billion $XXX cash for burn customer monthly October payments, driven issued quarter loan the end

Turning to booking trends.

XXXX that high on is but to bundled the than watermark given for Our for fourth yields. Booking first of was as of the pricing This were volumes the of quarter. and the higher XXXX prices same at for with or a the FCCs cumulative ranges, second compared end packages. tough higher advanced half of XXXX a bookings the XXXX for normalized achievement, period during historical historical at is are the half comparison book for without quarter higher position XXXX sailings great third and

During the of quarter us full fleet on compared the book XXXX, advertising increased third allowing our being operation expense to our generating the improve pricing to and in fourth significantly of we in position. demand XXXX, anticipation spring in quarter the

the quarter is spending below fourth in quarter XXXX. the our advertising However, still significantly expense fourth

for insights makes, finish will our I difference a position. into What with up some except liquidity. our Finally, a financial year

we XXXX with the we Arnold cash flows liquidity, customer significantly generation have million last operating $XXX already entered refinanced optimizing debt maturity As build. financing needs billion as cash but as and with improved XXXX. future year any for With flow liquidity our $X Through indicated, maturities, maturities expense extending level management to $X.X same billion essentially our per we to interest of approximately not annual XXXX deposits do ahead our year reducing by debt our have efforts, and date, continue profile. refinanced, ship

However, the refinancing to interest we reduce at right will maturities pursue expense extend time. and

Given and shift in our our of history XXXX, operations. other cash long flows will driven positive, focus to industries, unlike from cash by growing resilient deleveraging, strong, many

greater investment-grade creating return over value. And back to to expect turn over shareholder credit We call time now, the Arnold. to I'll

call David. the open Thank for please you, Operator, questions.

[Operator with comes from first Stifel. Please Instructions] Steve question proceed. Wieczynski Our

that be pressure be get near-term you as media? similar quickly I'm started to and it to But meaning half witnessed you due clear So bookings sure fizzled say know which would that of out Omicron bookings I about the XXXX? want booking understand very slowed want is the for of rebounded got to trying go. might out further I to that And to really first it's impact then Omicron. the around what hasn't bookings. pressure Delta, way at just path out hard that, just to a is expect Is fair booking booking we around that to the weakness and And

how experience recovered from have plays in completely have the I out. this think about the I we to opening November Delta variant. We that. remarks shared see We'll the in

damaging experts is date news to be those to on we effects highly infectious. is appears have get it great variant to the seems and encourage especially that think and the that everyone medical people who around are contract it, vaccinated, less this from to I scientists vaccinated particular everybody their It while world boosters.

very our Europe. so and in had were there sailings effective have these recall, performance, had we and as before I think vaccines, effective place, actual will again, protocols, even we protocols you in We protocols with

are. amongst there socializing safest form we're that the of travel and So,

And the any hard quantify not on this have so behavior at globally. the us although bookings, consumer to we your even it's impact reflection we're to of seen on question 'XX, a half of any kind overall second bookings, impact, point, major 'XX for

this we've some impact. So, cancellations, And had strong. We not, a near-term some we are booking cruise do spike sure, have at we patterns the little see seen but in point, and not one your Delta to the seems on limited that any. hope question. playing at out anything based be this and time, I this here experience anticipating of variant answered how

then said time color. more great David, you I'm get magnitude available I'm the $X.X you here you is you think how Appreciate actually more over, of we more costs refinance guys, that. get is second year? number and And help for at talked And being months? refinanced much here? over trying I'm understand XX That's Yes. from how But just wondering detailed the far, billion to you to really the X much to around I'm to you that -- I have look like what not by is maybe and think could question guys us guidance so David. more about $X trying about that next to might interest the And probably go get next 'XX to for understand billion, not number trying

Sure.

in interest expense. that or low did high XL that XXs have and those piece of So high rate XXXX the are look our structure, terms in interest the we notes capital Steve, you debt if biggest at Xs

exact for did that indicated, interest that in is we'll interest that to lower further. there that few look is consider doing the the notes. and of the $X.X do to depending at those any there dollars XXXX. forecast on timing outstanding with expense guidance even an And -- during opportunity we for and on the could could refinancing billion billion, of time refinancing give the So And right But keep be we expect there we of that And XXXX EBITDA to amount that levels savings in correspondingly what should do rate mind on XXXX to interest as overall debt that and drive forward. considerable of debt XXXX, higher going believe as course, opportunity expense the compared begin refinance, down a drive should and in have we we Arnold down. our that's

little but a give expense premature expect it's lower So to XXXX. guidance, in we interest do

Please next Our Robin comes UBS. question from with Farley proceed.

your the second Or of of firm? may during even for can sometime over you pricing can than potentially, challenged, and where where of there firming So in the sort of moving is is gone in a QX, see firming? that where some Is of kind but are that pricing point it earlier seeing near-term point? Is sort you half on has commentary realizing, that sort is that where quarter QX us a QX still the you it's seeing second half, last of course, there May from such Or have forward? point and that bookings see you color? you're it up 'XX firming the things and impact give that being up stopping

the take to want you Dave, shot and... first Okay.

Yes, sure. problem. No

half the relatively apples the are XXXX, in speaking, that we're back half comparisons a back because are the talked the the the comparisons listen, of first whole talking also we've in is and the running lot and focused the XXXX. the half ran on of in looking year, about So about that reason of and apples we're similar we to itineraries fleet itineraries you're because operation, is

can trends see booking pricing the look So it's like. and -- the an trends apples-to-apples you comparison, what

If this you and exotic remember, voyages. oranges. we of Cruises, we In long half XXXX, had had World first at look XXXX, the is apples

fleet not first That's in for the true XXXX. half whole was Our operation. of

we're pleased per look apples-to-apples comparison itinerary revenue you doesn't basis, cruise detailed our at nearly to very just look as down detailed the the level. with the was And to pricing. I fourth So as PCD I some X%. mean, level, yield total the give get when good quarter, you on an comparisons, at mean, up

with that very, whole and year, apples the overall, pleased it's an very for just so the pricing it's the seeing first And half. oranges we're we're for

the other that ships, XX which the the gone of piece, any whereas and your to way then than are things of XXXX, more And the in inflation? of status, restart all to And reasonable sort realize think the that about my you expenses for in inflation 'XX. reasonable but said recur being just ships unit Understood. Okay. I improvement would the guidance think sort offset the to efficiencies some offset may give for than is hire is those recurring, XXXX. thinking -- those from very there is efficient expenses. that Once helpful, would the less gone, you expense question, won't those an other it commentary per all having it savings savings that piece those are early and non-recurring expense most your from too inflation of about in in But that sold be pause from number more the

know want it now, so to on. inflation the But predict I of a able wouldn't we're to revenue fundamentally you. look And whatever inflation and as fall have the But that. are did more in I going in to be and be ships the opening what happens said holidays and what we'll and managing will EBITDA us 'XX. all cost leaner more a out coming we're with clearly, better basis. for thanks efficiencies bottom prices to, try we'll and put we I positioned, in 'XX be efficient, we deliver that lower you to Obviously, we're strong we in Robin, question to inflation see happy line my of the exiting to is tell anything, to but other generate comments, that. more can't know and is we that, expecting or and forecast than But because can you and what to and to position in that understand we

question next with Jaime Katz Please from proceed. Our Morningstar. comes

over you the First, comments what more interesting little the are I timing it of on might year. spend be that news. the And first from if in guys it perspective, a such publicity hear and a guess would about like all loaded, of very bit seeing chain procurement that, hear around then would to of the marketing course half? the next is front-end My uncertainty the around any the the supply be have issues given you given

Okay. Sure.

all, pleased spend, enjoy, marketing very pre-COVID, more advertising the able itineraries to the where any results we've the to very with Carnival especially of we're be, what or normally they limited. been again, are the without first would On comparable brand, with

get greatest we spend we effect where as less launching we are. of brands the talked than still from the in the spend say, part we're wave, impact. campaigns to efficiencies a pre-COVID in of for at being we wave, looking had, And diligent across very significant are So previous anticipation that as how years we but for and about ramp-up ready

as gotten more in well. spend, believe, we've efficient the So, we

up and and and of guest ramp spendings to behavior. what's half a we'll bookings going the sense the But spring be we to now until ramp full won't in 'XX starting make drive sailing that. in we're fleet as we second or of up. sometime beyond, seems really go whatever, obviously, to most the looking are so for with So lot the But what judge again,

a supply guests had particularly terms world. In We from sourcing of question, over at lots global. provisions all There's services times of source single dynamics and and But where procuring, a the in in a public with compliant great a way We've sail or the area. is time we're particular able best having the everywhere. challenges, guests, we are great very the to challenges issue chain the interest for much in health. way overall, that are in of

been manage either And to color other we've able add, to through. point? so, want on David, Any you

get cost. the was to mute. that there remember, 'XX you Robin want just No, just to add the I XXXX, about well. on point the I everybody we by the one asked think I I four out XXXX. and hit to inflation there's did points question when between wanted to of I time apologize years point.

other mind in made to costs about that comments keep for just addition that Arnold in So the XXXX.

comes Scholes Truist Patrick proceed. Securities. question next with Please from Our

can you Previously, the the advanced you And of course, half now on second 'XX clarify help at and half first half talked of bookings about of on commentary last combined if advanced of make I'm half me 'XX year. the wonder 'XX talking the that for had 'XX is together? and first periods just I said, for sort of Great. just bookings. the just said Does both single that ranges. you your historical second apples-to-apples higher you end the 'XX, a you're and apples-to-apples next trying period is half for When of the of about time. that separately? to 'XX Or just of bookings second sense? to what are

Go David. Go ahead, ahead.

Yes.

individually. of because historical the the So looked individually when the period each -- is well, at end we we separately each reason range higher was labeled at the we and one

okay. -- then And Okay.

historical year said assume clear Would second those high -- going to we're I had meaning that said interpreting to back next half had now quite be as that as next it quarter? not to is of -- new but high, the for last So here, it's correctly? you fair it's individually, that apples-to-apples, at a Am I high, bookings was of higher are year look not half at end. the you historical previously, want

Yes.

because maximize properly wants pricing But if curve, on you You were correctly. -- interpreting to the the that want booking new way, the maximize ship when goal to by the sails. breaking be to is revenue and records the really nobody the advanced

slow if in a position, booking raise the you're time great down historically, price, that to curve. book it's So

the that to that far didn't I money properly. table. it need out sold were on ahead. If be we at manage don't half we you moment for told left tell you'd XXXX, in We back time, the You of me this

back So slowdown saw shocking it's a a bit, we price, and that raised booking trends. we not pulled in and little the you

that. on color the appreciate I enough. Fair

from question Suisse. with Chaiken Ben next Please Crédit Our comes proceed.

the forward capture didn't apples-to-apples I to for do me, versus that commentary that this a gross gross make you give XX previously? I can -- Another does try the does If is Does this bookings guys Or adjust does Meaning it not? it sense, offline. bookings this mix on pricing, -- question. the ships shift, or forgive just when removed? guess,

Yes.

in in just the that existed XXXX of we're the fleet So all looking bookings. essentially, at

We're doing the we fleet out fleet. don't We're sailings. XXXX left consistently. And so the versus today's subtract had for that ships not doing fleet we

So yes, price things. get there a better other is ships some benefit to and point, mix of -- as will Arnold said, better the cabins newer

more benefiting and generate and time, the EBITDA they're they more efficient, cost as is also over that significantly well. price so And

flow and all cash seeing to through that ultimately, trends booking the flow flow of and you're the in P&L. through So

don't another The those than and But that we others variable another adjust certain on variances so are year-to-year. normal itineraries there, so so more happen and other higher either. itineraries yielding itineraries are and forth. And variable thing, are

you. one And makes then sense. totally Got other. guess I just That

guess, to passengers early You you additional but return well? wallet in an guys opportunities kind cruise, incremental onboard as I we're mentioned have there Like you seeing know I packages. the spend? several to are of seeing -- times, are bundled are on

seeing levels about Absolutely, there's past. which right revenues because that's overall, now, a board even it But there's some over that. There out cases, up no seems experience people to good some just appears have go is And each in you this and we're currently yield different. I'm also now, bundling And up higher sure, a showing board. has that where additional on to pent-up always time, done question getting you spend. contributing is strong. packages are There's brand be In time bundled anxious more these to it been that right always that. than of the bundling. spending very been there We've on are -- there's and and when end things demand have greater also,

question comes Next Research. Please Assia with from Infinity Georgieva proceed.

of is prepared is a Arnold, that have you occupancy, remarks mentioned the XX% Carnival questions. already in fantastic news. the brand which I at couple

at point, much pretty fixed. have for they're ships date we all the the this restart that Given

hopeful be that Costa? at can to possibly, I get look that levels? we it? occupancy? is might Princess somewhat the Is way So, Carnival getting that hopes there the occupancy Can a fair brand up Should closer might think for higher my brand and be that the be to to we upside next levels from

Yes. Thanks for the question.

had on comparable a number I a think, on are there the ships those Carnival first we've of and is the brand XXX% trend of very to occupancy pre-COVID. that most the existed, all, good. itineraries But again, itineraries

some And Carnival the just so, some in execution you great by team. have on going very itinerary,

is complicated. In pretty that's next, terms brand of which

away bring ships occupancy. them As right don't XXX% back, we near anywhere bring back we

itineraries. you so ships look have return look to the to and when to you proportion service. then And service at to of at the And returning they have

the world. We also around different have protocols

in have caps We distancing that occupancy so European physical of a still and sailings distancing requirements the XX% itinerary depending on. that on to range, XX% or ship have the social and number the in

back are a of of we around to required here, just ramp-up the be going to have the into. ships speed are bring we're there itineraries So lot is what able to variables what the and see the situation and and protocols which

this can kind has have, we dynamic of a situation and predict, been. but we is plans the With very

the they to the be, the trajectory so to and and the trajectory their circumstances, the overall execute and and well. the despite Our fits on stops so holes and overall but able get it need bumps trend detours, the positive. forth pot trajectory Overall, and positive and speed team will is brands is particular to where adapt has been really given to and

ships long partly great or then You Princess Australia And you're winter and we replace to Zealand had New question LNG -- point Zealand don't to mentioned building that large in, Coral such have point. for in voyage you been because this coming referencing for I itineraries itineraries America, would reliable only uncertain the you my and Brazil, cruise LNG ships, enough LNG couldn't cruise out think, access that South has given Australia the such access Costa basically is do being an and in of or Smeralda understand to to her Diadema because this because vacation the four at season. into as that example? summer, again, you New the And gave three Costa closed segue me times. infrastructure second such Would new operating I at have facilities. probably company places company, a a participate

Yes.

we with if I building strong it, first have of we was started go obviously, need. relationship built think infrastructure we But there when to when secure no we then access, that And et partnership Royal -- in beyond terms cetera. Shell Dutch LNG we a the what infrastructure. ship,

to our coming. early the six of have five a commitment another environmental because now, we ships we're front. excited made And very commitment so the And on with

in can with use we again, And line use guests the intention them if see moment our sight of as absolutely overall, because but So to LNG-powered we whatever. good for or ships then our on ships. LNG. a infrastructure necessary, alternative have But to there our obviously, are ships you the support source, may purposes adjust LNG-powered fuel exciting clear the and itineraries yielding built here to that or

-- further you I'm sorry. need to participate would So

off Go the there establishment help infrastructure? anticipate ahead, We capital capital We the plenty in building a don't. that. that put little business see do your to follow-up. ourselves be Timing or don't at something of establish fund part are LNG having for commit here players participate Do this or infrastructure. of need to the we ports. infrastructure to the to think to us don't of but and a point help have there, we in our in may We to

Okay. Great. you've a a glad made And really commitment I'm such cleaner to environment.

that. well. as So great season I from holiday appreciate A me

Thank you. Thank you. you. Same to

from Macquarie question next comes Golding Please Capital. with proceed. Paul Our

think The environment, the more room higher-end mentioned the should a you just structural a book just clear And you're state about then continued had current bit evolution as expect yield earlier sequentially should to mix. towards looking higher-end do expect of David, I'm increasing room long question wondering a we're And quick in had the beyond something order because thinking in have we on spend, state on propensity? mix? marketplace. inflation. mix if as shift I you I higher that's I see a So follow-up we far term increase once

Sure.

optimize with mix I X don't remarks order higher points effectively about to prepared you're will balcony fleet I the balconies do of through on that analyze the the levels that We've and in customer drive to yields all X been than talked mix and in historically. which will future off or the think cabins more ships ship, to X Arnold designer start we'll higher and about, it set. is desires. hopefully we'll of balcony be trends return and think of what a our so higher, new I plans to those ships thinking into do. result we going points well making beginning work it's based way of thinking you in XXXX, We're each built cabins And of get able his and guests. builds we'll the which A think future that over has every our sure that invested we we have what time sure our and as So in and percentage believe that percentage on the the satisfaction about on can we was see for be we capital lot and ships.

here on as again commentary think side, your side fuel previously fuel inflation, we a robust start in role versus on hedging cost, was what thinking about a for then the on should thoughts team on cost more space? to the not we And your your hedging going XXXX whether program about Great. your is play

typically itself, at and you know. historically, We -- hedged care changes, haven't point felt we really costs you're that price over fuel hedging. I'm historically haven't than with talking and have and that we hedges other around. hedge. takes we we time revenues the about this just have and different we -- that, If in I all But But of time. natural we'll had that let have know portfolio don't some Well, currencies in

shift the nothing LNG, the mix than going bunker MGO and between meaningful on other And and operating here? into

systems There's advanced see air cetera. and fact we ratio in the et have over LNG, on question time, we're the we'll no bringing quality lower a ships, given that MGO, of

any a of of David, advanced extended to combination as we and forward. the additional of you go do color? see use systems, should we the air So lowering LNG quality MGO on want add requirements

blended for drop No, 'XX from probably mix it to My XX-point 'XX. does NGL a reflected that the I in fuel think well. 'XX average

proceed. Our Please Cipiel Cleveland from Research. next with question comes Vince

to occupancy. follow on up wanted I

August mentioned about I you that think was XX%.

more So definitely fiscal that appreciate it's inflecting to. it how looks into was to you like anticipate Do built it about it as stable XQ. XXXX? in But you build the it's more budget that or relates a of dynamic Kind thinking I your linear are your throughout assumptions? you that the alluded pretty situation occupancy what's second throughout half? profitability

the that start So overall positive. an with occupancy comment I'll is clearly, trend just really

there Now the dynamics look comparison at are when you made, you a that. just lot of in

bring some And comments, That's at they're ships initially For XX or example, you on purpose ships mentioned, full occupancy. obviously, we on brought in. in on, I something. not his think, of when bring them as as David we the

averages down your occupancy. And so that

looking occupancy occupancy ships. a overall where that sailing you and or have ships a trends those been on what with comparable positive while, for what's have So And at the that's message. for very itineraries happening we're

David? occupancy those you weighting have things numbers. number So a of

Yes.

the keep have result for And that very the itinerary between of the variant we quarter, variants impacted Delta the we was the been fourth few in hoped affected So had, overall changes we everything and that, the were and mind the Delta XX%. in other occupancy with thing, had fourth of many higher pleased quarter. to the have a quarter. which bookings, in August might fourth of month as that a else But

XXXX, month I Looking increasing we're some premature a good but be going the difficult occupancies predict to is be to or be. of occupancy us it'd positive by expecting give book position. the sort by it's for quarter to guidance. and think say very will We're what see And forward, overall to trend in throughout to exactly I

time Operator, have Okay. more for question. one we

a question William Please from Sundby with We proceed. have Blair. Ryan

and to have guess industry the tool month And to activation It in cases past procedures. a going still given live all which operating a breakthrough around that touch you tool around the considering I more really forward? like experiences booster, acquiring year do think requiring? question is of a for is so, a have feels when an been market really effective like effective here. net proof need I now start I results lean France -- on or

Thanks the Yes. for question.

overall, is whatever are the requiring the informed to line boosters. to the we in the continue where situation destinations in that again, be we're with that places. experts. compliance most act is world, everywhere. and vaccine, operating. vaccines in course, medical around think we're testing of requiring in bottom We by, home rules And markets ports But require are dynamic I we this the continue we the encouraging scientists And a

received boosters protocols our leisure course, us They be be over tested frequently, the and And in those vaccinated with very Of amongst sector. helped I them of XX,XXX we'll crew that. have travel continuing and crew socializing the any of safest is and mentioned already worked and have travel as the are is. of and have forms, before,

have work. they continuing they to worked and are So

with and are So obviously, we'll sailing But science, see now, we'll we right how it follow out. be in confidence. We'll compliance. plays the

to continue And be sail what with has the to But been continues as effectively need and the to. long we we'll confidence. now the that's the are cruise case, to be to cases, when on of propagation and are large, cases As case. lower there right continue you at that of a And some cases. work virus very date. spread or risk adapt want of to society incidence we adjust as at going far and controlled to ensure there There's that noted, to to we'll

most I thing most think asymptomatic important minor either are In symptoms. the had have we is cases. they're where instances,

cases not And that hopefully, to question? will the large. also had of be and important, that continue. Sorry, last lots have I in was people worse. Other that's at We society increasing have that's trend think And hospitalized question? or where trend

That last question. was the

your Okay. next forward and have at Look, safe talking everyone, we thank joyful you you. the a look Please I engagement. really to appreciate and guys holiday business update. to

much. very you thank So

everyone. Holidays, Happy

participation thank everyone. disconnect please and ask does your That for We day, conference that line. you today. a your call Have for the great you conclude