Carnival Corporation & plc (CCL) 22 Mar 222022 Q1 Earnings call transcript

Good morning, and welcome to our business update conference call. I'm Arnold Donald, President and CEO of Carnival Corporation & plc. Today, I'm joined telephonically by our Chairman, Micky Arison; our Chief Financial Officer, David Bernstein; and Beth Roberts, Senior Vice President, Investor Relations. We'd like to 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, into the to details first to Ukraine. the Prior getting of by invasion say heart affected want my update, goes those out all the of to just I members thousands Carnival our have of impacted family the ones in I area. directly and of know are loved along the rest for resolution. peaceful with of praying We, a the world, are

resumed back for of of our concerning business. having operations Now greatly our still to full X/X the operations with the season. reduced, on plan way We're a have is while cruise and to our balance capacity around managing. to the guest and the successfully COVID-XX are conversation we And well return summer fleet actively

among become the lower us helped safest with of and have protocols rates enhanced incident socializing far on travel than land. forms Our

fact, since have million In resuming guest more X carried we than operations.

guest historically Our we are guests enjoying great and are satisfaction scores. vacations, high enjoying

position exceeding recently, and billion; constraining itinerary consumer and most operating Cruz of scale, million interest headwinds invasion therefore, Cay, through happy, challenging of in XXX of family, members operational guest our vaccinated facilities, half and today our private accomplishments changing and out rates; friction Grand we members our and more reopened sheer Turk, we down operated collectively Amber complex, reducing enabled mid-XXXX; improving exceeding chain, different capital highest and a like: have importantly, addressed since troubling Omicron, our integral billion I'd EBITDA have monthly regulations where are our delivered agreements; successfully crew an our today Cozumel, Barcelona; raising, since we and generate healthy serve; Moon Bay, to returned supply debt, the Princess $XX shipboard despite we not over a multitude members course, billion, volume the time, to counting. work, and, our destinations everyone: protection and deliverables constantly which de Santa while start of Ukraine, owned which to of stakeholder stream environmental course, our these undermine always by protocols; of part health, Of priority, and also adjusted by our experienced reinforcing Tenerife like of considerable and encountering At the feat. safety very which their port Cove, small efforts secure through significant the Yet team than have return and a more to all operations. so At Half resuming Carnival thanking and contributions the which vacations Mahogany challenges. no and shoreside. of on Delta, amended people culminated Cay, costs, touch managed confidence distribute sincerely same vaccines; about guests team and their well-being Carnival and refinanced travel, over all $X completed for X XX% operations; achieved labor, cross-border and more. gotten to team's is us to successfully efforts, lost our and which communities joyful Through strong the and and continuous compliance, these XX of were planning of is responsibility consistent ships X.X greater collective of confidence. maturity of far, our losses lender our $X tower XXXX, liquidity guests; sight we top XX,XXX

Ukraine. of invasion the concerning Now

us. alternatives. from on was the in unable That instance, Russia expected regional of were said, end in to the of year, to marquee offer patterns. this the found certain nature while Petersburg have remainder decided recent of capacity Russian port For our ports booking itineraries, we some withdraw for we a lead attractive have there to the that disruption the close St. to totally where X.X% call times deployment and was been And in change have does

Now while added of the of ships XX, asset. and we a SARS, seen in MERS the does have be and successfully volatility And an again, the Ebola, has Gulf September Zika, and Arab Time with confidence, time to our continues fuel invasion challenges. travel like: Spring, business War, have again, more. once to our managed guests XX belt, through spikes through impact years under prices, some plethora consumer we headwinds mobility

In turned Carnival resuming weeks recently Cruise of operations. best X its enjoyed Line since and fact, XX month this bookings

experienced impact the an grew the due we Omicron, broadly had in of year our booking Omicron disclosed, quarter. variant. we the start first patterns at Despite carried to by XX% more on As previously nearly guests fiscal

in Of Moreover, higher have many course, our a over COVID cancellations as part on occurred obtaining as first the just was difficulties albeit due positive the there achieved results of pretravel than less overall society to that we guests experienced had tests. quarter. elevated of timely Omicron well without incidence an our course test which otherwise prospective the would impact

expect extended we However, and price said as we fully wave maintain did we would, an we season.

to It's our Helping consumption. a certainly prices. fuel dramatic we time XX% of in stepping in occupancy, we demand with for underlying first exceeding testament the already achieving further that our patterns. spike and month the prices. of than aggressively a we've are XXX% nature fuel occupancies more not the reduce to And XX booking sailings we're address fact, nearing crews seen that, In March manage in closer consumption. to up recent efforts Concerning are

there of to derivatives. while smoothing an up Now there And used have But earnings, an historically, come down. they've is is economic we benefit gone optics not time, cost over derivatives. have prices also fuel and

and With we're our unit our XX% because XXXX, carbon cash. few have on proactive speculated consumption that have in fuel a anticipate we fleet carbon XXXX. to compared it upon to accelerated unit our nearly Over as would XX% to achieve since X% fuel we further to fuel XXXX. reduction nearly the not very the And a XX% been reduce efforts reaching past board, reduction reduced glad drain and consumption with operations, have years, efforts will footprint intensity intensity we through derivatives thanks across carbon in full further

In those fact, we've towards resume strong not only been a again but sustainable, operations operating more further this We working made all-around hard a to company. strides company quarter. efforts better

decade efficient more fleet our removal these returning less well level XXXX. X/X delivering our profitability become expediting we at in of enhanced Moreover, of going a excluding ships as us effort ships, deliver to our to we also an smaller, improving a we've capitalize Princess, AIDAprima efficient on carbon X ships be growth X of demand to reducing capital. delivered lowered as capacity ship Costa the has the full removal And unit AIDAcosma ago. will revenues quarter, X.X% and for revenue balcony of XXXX, us to cabins ships: since will reducing having the since annually will to enabling continuing ships, fleet larger, The emissions foster fuel, newly absolute constrained enabling accelerated to percentage ships an are first to the the intentionally onboard and line. to additional more fleet from while on capacity premium-priced peaked emissions. to return compound bringing bringing from sea, previous our XX optimization forward, opportunities efficiency efforts, X costs, than X.X% have recognized generating new X our pent-up Toscana, pilot operations, also to and on The innovate point change. the the platform should more power, optimization delivered X% enable increase in her XXXX. return our less engines long the total importance even efficient battery nearly footprint capacity. revenue our which consist since to Upon the carbon of through total reduction through we optimize a removed higher better announced to ship of Discovery bottom During invested the to effect Again,

the We also sources. generated waste through subsidiary, production partner green ground-breaking agreements Ecospray, in to of from signed bio-LNG our

fourth drive climate in carbon we with addition, on air a which to lubrication rolling also X% reduces impact efficiency, system, business. out mitigate We've to in series reduction ships on innovative drag to climate in XX strides invest nearly of our our In emissions. continue generates the energy taken risk our change and haul reduce and

the withstand on Having broadened on the introduction XXXX commitments of and of the have been plastic the food our on most investment-grade Again, of of recommendations cash single-use all driver XX to throughout the generation nearing be return aspirations, an along and both volatility more celebrating hundreds with deliver Evaluation guests climate-related creating a with needed short that to flow Ted jobs working Task we along creating with cultures, proactively and over modern Risk time, day company operating all have our Force of Chief with kind. credit have Financial time world. rollout our from started profitability. creating advanced of Strategic Carnival managing social It to company guests bringing the cruise Cruise our TCFD, adoption with return strategic value. around millions Micky, and of Cruise have even I the with to path by our support we resume the reinforcing ESG We waste its important and will operations company life a and excitement of have Disclosures, to invested the across joy shareholder decision-making demonstrations are means that Line millions toward role ago Throughout positioned and business. on risk resilience years, more thousands than my maximize our goals bringing heartening spirit family the seems assuming processes. the begun time. and of reduction framework part strong and frankly, to waste maximized Carnival of we that's Climate-related the of governance XXX stronger built efforts. formation Officer, resilience food with pause, of service, further management as of There and of upon human Line can greater cash well on capital better Climate to our years. to our are ahead our the missed double-digit We primary over are and been tracking our enjoyment pandemic. we of dearly Arison such the efficient our referenced to our completion our and to sustainability multiple And quality return XXXX is destinations and the much fleet, we clearly new experiencing friends, XX Committee that with of industry, biodigesters and our the believe full be technology

Of done course, overwhelming it without been have from everyone. the support cannot

bondholders, And ongoing support. confidence shareholders, would and our export thank you banks So travel agencies to thank suppliers our and to to your Thank you once in of credit continued agent execution. for commitment your and Thank communities. our Thank outstanding you their many And valued team port again, dedication, to like our the you guests. again, members us their course, for and other I destination stakeholders. thank partners. to our you and our their for home to

on We back turn everyone are I'll board. that, David. to call excited the With welcome over to

guest start I'll a trends net I'll today quarter of update along flows. booking Then adjusted expectations. up cruise cash Arnold. you, income and with provide of with first summary on operations, EBITDA a review and our an Thank with finish

Turning to operations. guest cruise

of first XX for quarter XX% During from XX% capacity in the additional of first ships, quarter. we the restarted This a in whole substantial fourth cruise quarter during our the guest was XXXX, resulting operations fleet increase XXXX. the

optimize in of XX% fleet brand's operations. each the of as cruise expect to this our continuously full landscape today, guest continued adjusted income. fleet season our May cruise after the dates has plans we where advised In quarter, our that last would cruise historically restart scale be operating to to government of guest beginning ever-changing has the first of announced am end been capacity be our restart, at now operations. week, respective Australia adapt back commencing operations guest resumed for happy greatest generate for Agility cruising report our the As during we we in the to demonstrate And the that its we largest summer we one of I pandemic. share to to strengths permitted just April.

of historical in the to resulted time. which many number in were just service. across confirmed achieve first quarter, before percent lead XXX-plus ships departure, less the our was We these since For the first a never quarter occupancy occupancies expected the months booking normal XX% of sailings for than

would in occupancy the However, over for and quarter XX% expected to exceed anticipated of we improve the quarter had started quarter achieved during quarter the We occupancy booked first the XX% XXXX. the with fourth cabin upon quarter. that first

However, bookings pretravel and resulting during XXXX, for during result higher on variant, quarter results, on caused from we this an positive society test the as impact the increase including of pretravel in availability the an cancellations experienced first timely Omicron a in time. near-term sailings, challenges tests of disruption that Omicron

a occupancy at quarter position XX% increase being X.X% compared year. during cabin carried quarter achieved first for All brands shelved the fourth extremely on during XXXX. the which quarter, approximately a quarter, again, over million XXXX. well pre-COVID XXXX despite build guests, this inhibited from to our first we all passenger for the in quarter scores. elevated compared XX% and cruises first for executed per strong to XXXX of fourth this voyages first the Despite lucrative occupancy resulting at the was of Revenue increased X our Scores exotic Once nearly than occupancy quarter the book lower the XXXX being levels our continuing we the quarter Net ability in XX% day to world first Promoter our XXXX that, with

an Atlantic. other as We packages prospects the price future for sailings, in by the our the XXXX sides cruises bar, the in utilized when the revenue Our and pricing. great experienced impact to both for management on due near-term spa of longer-term per first and teams pause. onboard revenue revenue per up casino, quarter other in onboard held onboard again, way growth had were and our significantly bookings diems diems optimizing in Once bundled well quarter onboard. and Increases part the on canceled from as on credits XXXX, we versus led shops, guests Internet during first

bundled other past Over In of package more guests bundled X.X chosen see the end, benefit our we these offered packages the the years, and more options. in will and we revenue. have and have onboard

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

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

our called, cruise ALBD did available cruise the a it calculation term adjusted costs, net net adjusted costs the without cost per we the not previously side, XX%. costs cruise are berth cruise used. up lower was say cruise On of cost for quarter fuel same. day, as or is had The and I adjusted commonly XXXX, costs more and first

referenced schedule the as less first the part did income of second up the being while cruising look new and are fleet third, of protocols; that dock optimizing ships and over that the dock measures I expenses; ALBDs. per out felt status; are quarter we ships dry during the ships spread to point maintaining in our Remember, welcome higher resumption which by days, fleet X quarter. the days not more first, ALBD with and that guests fourth, ensuring which quarter without again was when ramp-up, cost doubling dry during appropriately the dock business first fuel is cruise that per in XXXX. versus onboard. we want further first related EBITDA, costs increase ALBD XX non-GAAP many during of because costs will in to a safety portion nearly dry This The our quarter, lined second the XXXX the adjusted their We the the release in and of also in and adjusted dock which of second, the of a restart resulted adjusted enhanced during However, costs will driven impact dock per cost and first status XXXX, XXXX; dry pause the expect service morning. in adjusted of driving of net cruise fuel to dry XXXX, double end these finally, expenses of anticipate a name the great will without inflation. ships back higher the quarter dry quarter health will portion XX not other days of our issued number cost in dock in press the without number quarter adjusted result and during update being of things: ALBD a the fuel reoccur of they we compared during costs pause cruise this enter earlier in our essentially in

result half with of see a costs, in from XXXX. the improvement of full As excluding cruise of double-digit fuel the year low significant XXXX second adjusted to a a XXXX to per all increase above, we expect ALBD, to expected of half the for compared first the XXXX

I'll a flows. in We with $X.X fourth quarter Next, billion quarter. at first ended versus $X.X of liquidity summary million XXXX end the provide of our cash first quarter the the

we driven during positioned we things. The well quarter our change remain in given essentially liquidity by forward, Looking was the X liquidity. believe

Omicron guest of our before, the despite said as our during to an had improvement was to EBITDA. ongoing improve of to variant. adjusted inhibited the $X We EBITDA billion which improved adjusted negative I Omicron resumption But cruise quarter, ability of adjusted limited First, occupancy due thought grow the EBITDA more. in going operations the variant the impact

million investment of our in capital export of $XXX credits. net expenditures Second,

quarter. the $XXX of principal expense fourth, payments. debt of And million million during interest Third, $XXX

higher we an Recent in restart the future guest booking operations. booking booking of sailings. for weekly been of since Since at at seen the any improving have January, trend volumes have point volumes trends. than look let's Now cruise middle

first booked albeit we season to the of increased half due the the During occupancy as pace typical a quarter, not position at for our wave XXXX, same the variant. second Omicron

book As of a cumulative end for the the position lower historical the is advanced second the of result, at XXXX half range.

situated expectation current and we improvement extended with given with booking an second our recent book However, we booking closer are coupled wave believe well season. our XXXX in patterns in volumes, position half for the

the on higher to that commonly bundled expect historical cruise throughout XXXX. in will I future FCCs, or to to sailings. of with occupancy return bookings these half build XXXX for without continue levels to XXXX to happy for compared continue prices be that or XXXX And credits, importantly, We am and normalized called report second packages as more

tough for are cumulative the of a advanced booking bundled end is We was EBITDA that Our I continues XXXX on of of high for prices recent a book with way, leading at at to our business. adjusted historical is compared with for XXXX be first given trends driving up packages for and position watermark will improved adjusted indicator within the half also deposits This sailings. achievement all net is great a trends positive that With to our without a finish leading the know the higher, clearly XXXX historical booking FCCs range, EBITDA comparison as yields. sights. higher the as our expectations. normalized of health income sailings bookings customer higher or pricing

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

have of dock XXXX. fleet, been the has first dry half or be restart-related over However, during XX dry impacted our fiscal as of of spending first XX% EBITDA dock and adjusted as ships, will will said, in over been half I've XXXX by expenses the the already

beginning to factors monthly these summer positive continue consistently and season. at we our all adjusted the of EBITDA combined, turn improve expect Given to

a to quarter the net XXXX on adjusted continue second U.S. We a loss both of GAAP and expect for basis.

for the quarter of However, we profit the expect XXXX. third

For the year, a loss. full we do net expect

experiences capacity XXXX, levels, newly we of and to occupancy over with fleet adjusted XXXX back Net turn momentum to generating providing nearly nearly X% in ahead on profile EBITDA million our full and forward improved our than back now And and fleet service than outstanding year, I'll days consisting potentially all are X/X continuing brighter Promoter to capacity to to returning XX historical Arnold. Looking delivered looking memorable in of more Scores the the ships, guests XXXX. vacation call greater with

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

question [Operator UBS. Instructions] Robin proceed And first the on line Farley with from we'll with our

revenue one expense have question. I one Great. and

talked low -- is you expenses, the XX this for and XX% about it double up expense, up For the digits QX year. in up being nonfuel of sort

kind XXXX year, So for or like be flat end to of would this of by year. the it the XX% close if it that's up with XX% sounds

to that in wanted have operating I numbers we're XXXX included about sales we’ll with make your expense comments X% So ex sure idea reduction ship the 'XX. those thinking And the fuel versus right. a in

versus cruises months down of sort I about giving guidance the end to So of of lot European is 'XX. there volume is how That's expense been And that think kind and know for from for comment -- demand the expense the not you maybe the Europe, you the if holding a high by have on specifically and be year incremental also of incremental price of then the that the of a But last incremental lots nonfuel the about that positive itineraries you're shifted then way think flat news sort of next more on kind price little kind rest, impact. prices European wonder of summer, this up but might could about how bit full in side, how then being at which the XX I outside of question. year? build. terms X% obviously, just European to have may looking revenue

bit question, dry comment on David the a we But cetera. both. directionally, as I'll et capacity out dock, cost had articulated, he Robin, of in a on have little lot

onetime of the lots stuff looking terms number doing costs and a over so at we're in of on. smaller of So had cost increases. birds we And

the look year. through in as increases going year things see second pointing of will you how we're direction. with and the the But the change not cost of softer, guidance we're fleet giving next capacity the half significant part in as the a of we've we including our done a right with And indicated, be lot for So forward, management the less inherently pre-existing of cost a But so all exiting the XX% ourselves ships then being doing to just infrastructure are efficient. the better things well. more to done new a efficient fleet, we've also which offset with and on from a things company and fleet, ships, shoreside existing as We're number active inflation make and standpoint.

I'll cost let on to you can David, go David, get So comment revenue. the the and back we ahead.

Yes.

of I've one of before. said a cetera. year. variety let's that do I'll vary I math et To towards speaking. of you directionally thing So a of by Robin, times do quarter the you by to your the for low get But directionally, double -- is overall correct, because area get dry that remind of sort have mean, back dock, the many to Costs flattish end advertising, year, digit things,

costs of mentioned said, also us giving XXXX. get leverage he Arnold capacity, I guess, operating have not guidance XXXX. and all more as So we're And I cruise XXXX. improved adjusted help for so the, that achieve we will costs X% mention versus for that we overall, tailwinds

the We years remind some I it leverage. But headwind. of you, that SG&A get inflation is is also shoreside will X

challenge. is that a So

give at guidance everything do the point. can will premature it this us we so to And XXXX. bit But is cost to a for properly manage for little we

David? can Do I ahead. want Go on the And wrap up. to David. you Thanks, start revenue,

Yes.

And actually itineraries, be interesting, recent even you went did the X.X% other of what's we the attractive said on, itineraries, the X.X% I whether uptick our itineraries look side, the Baltic go Arnold it I ships ships. for the is revenue across whole exception, for to Med for The we the the moved that that the all all Caribbean, guess, actually we're Europe. in in of changed when the had notes, to St. remainder the -- on also mentioned different we did, year. seeing course, And the in in year, Northern And and So change X That's in capacity guess, to as parts booking Petersburg. volumes. we different of of we his at the are have, remaining ports. of uptick touched

So impacted. days, the have early bookings changes those to But itineraries. it's seen for the those we remember, ships and just we made

got the in we -- trends and We of itineraries, across out. be good we've solid So all the to pricing. the out at we exceed I occupancy XXX% did great the expect for the the XXXX. inventory But for management the for approach second pricing. West are the even exceeded whether that will other the Med, the than revenue And Caribbean his they I teams where we we booking the to XX%. seeing good for from volume. or point volumes XXXX second we've East, occupancies XX And XXX%. solid we of good volume. that message levels, have of parts more are are in he But holding it's had to board, Med, said demand get seeing are seeing there which as that voyages I guess our in And are exceeded is not month notes, rest quarter is indicated that seeing mentioned surprising the for seen second bookings of Arnold and perspective even the the we March, that, quarter, world, we sell think

them other are attractive again ports. I hard we'll readjusted to get we booking itineraries very think with remaining around the work that positioned well globe. now those also we And So

That's great.

addresses XXXX that reduction in did ex X%? -- operating when thought concerned what X% commentary I that much think Was investors of 'XX. expense I I mishear versus been about. heard I have to you clarify, so And just then fuel say by

Yes.

at result fleet had Arnold ship basis, to operating the putting of X% was an optimization, everything a aside apples-to-apples else comparison looking as that's on that a just So And in XXXX. expenses. indicated

great Of changes was that. we also working obviously portion. just That There's itinerary, reduce in fleet that. that savings into XXXX. there's costs help to course, a the impact impacts us cost optimization go tailwind as we're there's other And -- that hard. which which There's inflation was

next from question our from proceed Stifel. the Wieczynski on line Steve We'll

onboard spending now might there. So -- start want a revenues. back pulling about given economic there's ask fear that I to be on headwinds other whether that I consumers fuel think higher out or prices might And it's

you given spending last would is be in slow in have any the consumer onboard? guess terms spend, might your couple data come So believe you onboard have over of you different difference the of guys down seen that And geographies? you patterns anything once guys seen starting I make weeks have to they there across realtime --

Haven't or spend, strong, in of been very seen continued up everywhere. around has it's slowdown that any terms the to like particular anything has world, been be healthy onboard

from So don't to see next. one major distinctions the geography

occupancy has per to get kind carry we thing, little can the that of the to and spending we kids up the summer, bit. But continued so you a kind see overall, the will diems of more As in and full is significantly maybe change be far.

guess liquidity It maybe way month and you that base Okay. around $XXX know if now I'd be and the do your to And increase you the get, word, fuel, don't second moving that some believe forward? burned first on question be, in level would start the liquidity And a at use need And liquidity horizon better might a just that the would position. you disruptions around wondering the uneasy. you with like anything I guess I ask to to Got you war see make question you. quarter. of I then what Omicron would looks around might

had period. We've through liquidity good this

and forward. of We as course, cetera. move obviously obviously, deposits, and of this But we're able will more stage, continue good shape in something generate we to our David. report But and that et customer revenue changes, right that see liquidity and our going time. feel sailing ahead, ahead on we At to more If liquidity we more Go obviously monitor. are now, ships we'll good David? at feel position. about get

we is the the the of it there the And we -- there's been that that we I one that all, mentioned, think on which about to we of been what we still addition that. XL there. opportunity Arnold is, obviously, months refinance add those as been as through with quarters mention things liquidity, thing onboard. to time demand. just opportunity. to revenue, capturing But is are -- I refinancing and And that about, our an Can I concepts just to ensuing what think price, is what is as continue far out being than onboard And optimal There's add of billion course, in only Arnold environment XXXX been raise strong thing the to that, think in think in I didn't X notes, want and maturities those want to have the raising guess, price ahead. first $X the we other we've about the have

the our from question to Citi. James line get of on next the We'll line Hardiman with

A couple the pricing of questions my on front.

day you up per passenger So X.X%. revenue guys cruise spoke to being

that I at pricing the think think that to for the obviously rooms ships in these whatever, would concern number encouraging, the come which weren't that was right? the a of fact that XX% I the benefited discount. cruise XX% last, in from was quarter X%, full is November plus

actually so pricing the XQ. And to we a really pricing obviously. take that That is full to X, But strength XQ ships got the from more sample of this accelerated couldn't as bank.

numbers. to continue of any that bit come will those to call So contextualize reason that Or we the there occupancy? it, opportunity as should is to how last, there maybe for Is to speak the accelerate? in think we get these a pricing XX%

for thanks managing we're and your work certainly have hold the all. accelerate. yield. where end question, in to And make We're of we'll to to the prices to see -- certainly certain going hard We're first continue

occupancy up we price. now, We there's demand. Right optimize time of advertising so and lots promotional efforts goes ramping obviously be on. will to our want And and as

have We've were more smarter where XXXX. and we we We still how below already, efficient that. do increased gotten but well in in

pricing and want to is heard And keep strong, color. more we've been to you from able I demand maintain so so price. and going. any what we create far, it more David, add we want know if as don't But you've reported to

the only said well, sort the thing to at when last you a in, shorter. it been comes last -- the that about differently bit to window you're add come what James, going of does is, The to quarters, has for the need wanted second. much last saying, Yes. to because XX% it little booking in XX% isn't I think really few Arnold last Remember the

the described, that much said quarter and we'll got an is out do of to a forward. see booking expect we demand, way curve where go curve. today, historical short level manage think we we we shorter booking driving the advertising. our appropriately. occupancy to historical Arnold when manage occupancy We're to one of because to the And being is the levels. as as very so improving future, term every with curve, booking And occupancy about And the get we that don't careful looking get mentioned, XXXX, in the for expect reasons until We'll to but levels we've we're fuller along Arnold pricing XXXX,

the tremendously seems of days evolve. -- Although will advertising to continue mix and these changed be advertising to has

booking think it of year, because a terms of lot curve to levels can demand with in longer to next we cruise. get want occupancy People there. towards curve. So And out those the there's of booking

we're We and make Arnold trying land-based we to a good alternatives, of still to raise have as less move as value a a product. forward to compared bit value price great it We're a indicated. although

don't of customers if more as base, differences your of you those any to to the U.S. bit call a that of really XXXX. That's then would more of And same consumer Are sort a out sort look customer. have, piece right? competitors market everybody mass of versus not the sort pricing just there I between wants is really strength then and apples-to-apples? there maybe helpful. a, differences And major you along global major And your Obviously, those worldwide. lines, make any other know I comparisons compare sort guess, a are of we

think those And of contingents? for potential so growth how out the do about we

apples on of quarters are we're differences, long is is your right. It the [Indiscernible]. the so understandings different and not of even all, of month least First fiscal and number oranges. There which are a

best that, lucrative our lot you on have itinerary composition have is It's and more the the European exotic And and some to have others but itineraries, more of right as world so cabin may for also we be of of -- itinerary so When itineraries. we see in normalize and some mix, all difficult doing But try month-by-month, done and well time, that cases, the that, recent others. In things anyway, when of, that, up our one addition mix. which it You of forth. similar perhaps obviously, would extremely those of But all not kind too, big they've in in of match cruises to in we've we're cruises price. on and different. terms try mentioned, are now, timing, you do as to changes is which times, a has to you because we then better the occupancy. at the than better well as same done done

don't we so anything apples match don't But to up. when know else. David, you and try the if to big performance is a we end, see in add it that And on difference wanted oranges. I

I'll some clarity add to that.

at their vaccine of a us fourth mix. any had a balconies, lower our some at less because the competitors, of which and leads more quarter our are not a than price one lot And carrying part of requirements kids competitors overall occupancy higher of during cabins kids was to one the price. probably and period, also remember, of So as them

position. too, we So overall competition. did itinerary lined what that internally November ourselves do that to mentioned do is compared we December. as and the that months, for a differences. of up October, affects But can the we And the Arnold our result

equation, I PCD within of occupancy. sell best opposed price is incredibly the percentage to all the did I occupancy, the will out that balance And you, my the try ALBD the if look gross the suite ALBD down same, was and on per out, also X at Remember, anything so points. sell to balance. there's And high. Because to ship one revenue the X it per be to if way we reduction revenue per X occupancy course, there's gross as in all sides tell else, PCD. revenue when per But we're you didn't all and balance companies, because, one penthouse would to was

in reduction X percentage between ALBD the revenue difference So was points X all companies. at per

memorable vacation forward better And XXXX so are, providing globe. in and And we're to, looking think as experiences said, people we we're I to as some. Arnold around million positioned I doing and said, well the XX

Infinity Assia line with of Our next the from Research. is Georgieva question

It's did. you mind-boggling refinancings how many guys

hit and could think interest expense expense have How So forward? interest expect this significant XXXX? probably model David, question a on be of half at the the to there back savings should further you I you. we fruit the going into Do lowest-lying possibly that you year point.

Yes.

which gave So the $X.X forecast in billion. interest the of we was forecast December. in same terms update, a interest back we expense, was business give did expense it in And

savings at we're there full the is XL some forecast as might But flip possibility opportunity, the and We Fed for on and our notes provide watching the move we'll opportunity, that the that over for all in is do that side, to at interest the refinance up. some look time. year to the rates before, carefully mentioned I XXXX. have So future. point the And

point, it this little forecast to XXXX. at premature So is a

it exactly it If in or going do what going you to the But you Fed all, plus let know as be is neighborhood, me think in it's difficult. is minus, But and XXXX. to know. through that

called me Fed The today. hasn't

winter So XXXX, that will be during I latest itinerary a Can thinking couple the -- Australia that XXXX. opening related. what question, obviously, is. ask news is don't know revenue helpful up. And great season one the more I It's and of

an in ship? you year? come thinking think do a fiscal based little permanently opportunity be might you ship U.S., current that is just as will bit you Spirit of to that And so that are one more within China the Carnival online another have opposed adding that Given the scale

April to government delighted cruises Australia. all, we're Australia extending May Well, selling And XX P&O beyond on see as in late start first ban of Australian the that you is the date. to announced, are the we've aware, already is not going

and cruise again giving opportunity to be Australians to for Australia vacations joy bringing happy who to cruise people an so. want in we're do so And to

to pan out profitably, practical. China, not we're as that. see China, it. still And we we'll have there. when we're do So with do to Right things won't. always we it now, said excited it's when we'll we've able can't, about how And

authorities everyone. open we with And in to that there not other open quite for and the that to work a way for still makes places it cruise get continue sense yet are so eventually

almost are put overall, Fed me of XX% once way. it we'll for decision things mean historically hasn't the The brand, that. ships the Carnival Whether say -- looking over again, we're for But the sailing. in demand would not by and given presence. greater think that's into Carnival now made ship Australia But to either, are time. another So the even have would I are would things Australia some I that's at an point up illogical really the certainly, be today -- be called the various good. going brands, to

specific now, any see pan So but we out. things at how we'll have this point, don't Right plans.

David, Yes. I'm sorry.

in The guest moved everybody only the cruise I out X Cruise during is -- that so ships to operations. thing remember, Carnival Lines remind just wanted pause

a as at said, that, everything reexamined But Arnold we to optimize cash Lines. as result it. make needs to of the Carnival sure so and of be flow we'll And relook profitability Cruise

-- the way by And

season, right? few a their months to before time some go? have there's So We still

I the strong terms indicator bookings it's weeks, Carnival has wave the positive good, for of the Yes. unbelievable overall and hopefully, in mean We've in yields. occupancy, brand lead period, well. bookings leading here for and in the is way the been few Carnival doing weeks super a few had industry. And is level so brand the last past

a being also those to it I or cooped but it's imagine And Omicron, make up for longer just wave of been decisions people taking And uncertainty, little have the slowdown is the pause season does given because because years. not bit or that It might X geopolitical. COVID be seem extended.

continue to next a the So great weeks. over stream we'll hopefully, see booking volume

the the no But uncertainty driven there's in and by momentum. that. Absolutely. all COVID, confidence, invasion various consumer there's all Yes, clearly, question, dynamics, Ukraine

with Stuart of next our the got line question line We from on Berenberg. Gordon the

Yes.

you to that of of dry up on dry then sort occupancy color Just Omicron, next And should that? the putting be one And I'm damaged is year first was on full a just a you're couple it? the how versus 'XX, the of of points give I'd is through some for shape What that if if be year. on the interested. Omicron first days the from dock due that half have some will us second lot Could cancellations just days dock perhaps 'XX. in of a 'XX expecting you're also days. the you not on number you required assuming therefore the flavor could impact. give And

Yes. about you days. second part tell the take let the I'll and David dry dock

and line we it get the an in extended say through we impact In Delta. on timely got an It's -- and are it there tests. it and got had weren't cruise positive, wave bottom uncertainty on is and and to and wave terms get were they direction. to created. why overall of season the either they Omicron But or we is of we caused pointed that But had We all consumer impact, through confidence, this it else. it People momentum Omicron, feel isolate impact something right as society have tough effect it was an seeing and now. clearly rebound that an And clearly did why to couldn't on it had it. lots we just now through Omicron feel disruption. said which able this things so just uneasiness there's now, was partly testing quantify And the then and we was as the comments, opening are in

David, ahead, dock go days. on So dry the

Yes.

versus days XXX XXX the the XXXX. in dry quarter, versus the in first So XXX second days, days XXXX. dock we there's have days quarter, In in XXX

XXX right year, For year, the is now, plan dry the full days. dock this

half of the dry fourth usually some first the at be number quarter. moment the I ever fourth days. of first the XXX some or the can in be of docks way, most is XXXX. in less. dry the first the By in There'll 'XX, But dry have is think the unusually either We will dock the quarter. don't many you only half half quarter. have fourth the I days additional docks to, significantly more see an number. probably large exceeded. XXX we've down But are

back we're in guests in make is We're XXX are you, something to mentioned the will we probably bringing get get we and of are the hull. great it. back my a ships want those efficient largest hulls Because the The ships. the we from ships think optimizing And And fuel I I onboard. much as it in had. not of the you the sure cleaning was incredibly I ever more But tell range course, clean, service. number perspective. look when notes,

But we So apologize. don't optimizing are XXXX have fingertips. do full you the can that year the I get at perhaps situation. my Beth I back to on one.

of very I question. to helpful. it seeing Could were the a be each if just to I No, say an Delta that Omicron, less fair Would to that used first the that we're recovering nature observation you're it? also we see back variant, but variant, was iteration fair the impact getting at mean to is a, b, would least? be human circle because of more faster; to another

prepared. is course. Omicron the better or getting everything. That's variant of we'll fewer -- epidemiology, There's And to sick better see transmission, or whether people really understanding think the of variants. it's whatever. a Omicron of happens people and biggie, clearly, have fewer More are with from, of I But of people B vaccinated. are and society what

from And in effects And are society to worse right, been so us ramp-up which be, worse. to safely with well. how people or are see that, have and learning hospitalizations long-term protocols the and with some course, you're should it a our -- focus live -- doesn't absolutely huge where as long is shifting it of comfortably. very And it variants, I served then live think more have as is

vaccinations, incidents we the all have place. in are the the of partly because we land, ships, protocols than the testing, equivalent far other On the better on

a how of we're And and about lot amongst the learned there so is, we've safest to socialization forms manage.

is through so we than of public through through it. and continue. dealing what But you're And at all Omicron, overall, land worse, would getting on had interest it. find have you gotten and seeing as you long health ramp-up best used or trend think today the much Delta, would those, hospitalizations as the adept society pretty with And have lower don't incidents serving to would then

testing much side. is issue the on very more That test remember, a And Because helpful available. will for be quarter, as well. first that us, in big was the

to our next get We'll from… question

will question. This the be last probably

Okay. you. Thank

we’ll from with question Fred line Wolfe final the take So Research. from Wightman ou

else home Carnival porting, was broad-based on where South terms anything or the XXX%. in Florida are departures? hoping would little that It bit But mostly I you might to you largely seeing like occupancy of add sailings give sounds be could detail those seeing in more concentrated located you be the those a brand. Are are strength are pretty where great. over

American not more the brand. Definitely North oriented, only Carnival

itineraries I characterization would have think traditional to. people better been of kind be the that used

showing ability had from and is you. at guests public the to we definitely coming take that a serve And still sell protocols, back. most which really XXX% number interest things made destinations they ultra-itineraries important aspect good is think in protocols a talking it of because so And health a with the health and course, of and that is XXX%, sailings that difficult available had et outcomes lot cetera, have weren't what that with of or to of we've there the at safety standpoint. overall, have But cases, you're of I

have that and towards sail. full all all deal markets, the less, occupancies characterize we elsewhere but X having that world. ship have challenge. There's all it's and additional a The protocols of are we we But markets that's of regulations So I in home time regulations all of over There's -- that still the in creates and There's with. that, would to over moving becoming protocols. have And destination it. of restrictions. not lot just brands kinds destinations

and comments current commentary 'XX, a And you price? are are When the I'm you sense. about making housekeeping curve forward Or spot into this at for you question. of assuming the fuel then Makes looking half just assuming year back forward are the earnings there? of guys that?

Yes.

do pretty assume But better will not very be was spot commentary broad. commentary our I than the is guidance. broad. the that And specific price. So we're current fuel giving

matters gave where still it's of a fuel price, on -- there's we're bottom profit to it's loss. within while price guidance So a the line, we the range depending -- wide and the still

you heart piece goes thank very your of interest about much. thank Thank appreciate Again, excited Operator, everyone, We But we're there forward brighter you, our impacted invasion. days ahead. in Thank back you. to onboard. But very us. welcoming by all all. We're out you. Ukraine those and to people looking

We much. That Please day, conclude Thank the thank everyone. a lines. does you your for disconnect very your Have for participation. you good today. call