Carnival Corporation & plc (CCL) 29 Sep 232023 Q3 Earnings call transcript

Good morning. This is Josh Weinstein. Welcome to our third quarter 2023 earnings call. I'm joined today by our Chair, Micky Arison; our Chief Financial Officer, David Bernstein; and our Senior Vice President of Investor Relations, Beth Roberts.

Before I begin, please note that some of our remarks on this call will be forward-looking. you cautionary refer press in will release. I to statement the today's Therefore,

another and of quarter set Another and milestones records.

over This quarter, $X billion. well of in well $X we reached billion net and income excess EBITDA

adjusted also high currency, the our adjusted EBITDA We costs of revenue, and net line all end with income range guidance in adjusted June cruise exceeded that constant expectations. achieved with

The amazing for both team, the exceeded outperformance high. of and quarter. deposits $XXX that than that indicators, anticipated and brands, American European all-time forward customer efforts our we important was segments of strong reached that and equally million booking the ship an volumes, exceeded were our quarter. shore, the for higher third XXXX's our record The income Furthermore, driven levels Thanks yields adjusted strength demand this outperforming and both to was North in with levels guidance hit our expectations. by midpoint result net by

quarter. occupancy quarter as our highest-yielding than outdone, P&O higher European itineraries hitting occupancy August. diems XX% be for to the capacity with despite And anticipated levels Not Petersburg, decade, was among our XXX% overcoming St. achieved which occupancy increase in third its third brands a AIDA, and pricing, XXXX, the and front, X in than XXXX. to points Cruises highest also more were per both than On and record hitting absence a Costa in for came the over from better of weighted

by elaborate the is consistently revised of points pricing on. year. up we XX will in gap over consistent closing diem and our while quarter been David about excess which upwardly points, have first impact, delivering the course would the the we've quarters occupancy per which of been guidance, this XXXX for levels, estimate well Essentially, X Normalizing with each of fourth X growth

expectations fiscal down much has the we're point. narrowed for managing accelerate up allowed range behind a how by At already us working full year was to is in diems expense our stay of our a full XXXX take guidance while deleveraging as time, per cost to given we interest within our This strength plans. demand same us. Continued accomplishment meaningful

fuel XX The fuel the fuel fuel higher one I than revenue which more by heading other and to that we've our spike into this currently reached offset line last has bottom prices this much our combined prices the level. in year. second step only price underlying is there's alone forecasted additional significant the would that million prices, the while changes million an case, delivering business before, plus been rates recent volatility improvement period years are our note XX% to in quarter. $XXX experienced fourth masked June but is up the compared half drag to guidance In in of in $XXX of for and a FX

raising As more, our XXXX our guidance range, be net is expect which a we adjusted we're to result, expectations well within year. EBITDA or and $X.X still the prior for income our billion

constant holding past, capacity, currency or of to to sense rates benefit faring EBITDA done progress and from the give I've levels. price the a operationally fuel fuel share and without As XXXX how in increased noise price of ALBD per our without we're you I'll currency

striving expected, and in levels third quarter, levels we're the in second XX% the XX% better XXXX fourth than XX% the hit the XX% first reached in of in we which XXXX to the was We quarter, quarter, quarter.

having Of on our we're ignoring course, impact the is reality, not in business. fuel

years. for focus a been it's fact, In

way fuel costs work to possible We aggressively by less. manage continue the to best consuming

that wide with lower the had obvious, and ALBD this of keep we XXXX, margin, in fuel our hundreds beyond. not than We're XX% gap. peers XXXX track a benefiting is anticipated. effort it's and XXXX carbon our XXXX even dollars, on something for the in consumption of but resulting nearly better change stating a by reduction to this by I better usage is XX% fuel-efficient bottom widen line step only we on than fleet environment already for of public the fuel achieve intensity per had to millions pushing looking most the also into we'll and know Heading and we're

into with year. pleased heading of our revenue Speaking 'XX, next still I'm trajectory

brands working of ahead about and next in strong last We're business significantly aggressively of improvement further XXXX. of by where as we yield position now same a time points been have ahead base to year. year were revenue well Our we build for XX

less remaining already last and inventory levels. same sale capacity X% despite occupancy fact, we at year with for time historical sailing the at have In more

brands as time Our booked booking ticket our brands XXXX XX-point exceeding we've same And highs. achieve far European essentially year. our curve the to to been position it. is With at ever American levels and as out for we've last historical this occupancy able higher advantage seen importantly, back prices North now

it's great XXXX. accounts, to a all start By

While our out we XXXX inventory sell. simply booking see for we brands, will to recede no some signs of point, volumes run of demand at as slowing for

to as or concerns our the results, heightened seen haven't bookings state appreciate But to vacation prioritize we is the those our seeking around their the we consumers for we just dollar. spending late. vacation and continue will of fact continuing consumer Now more value of on there we are experiences in it are over the material resonate And with offer believe goods.

next value unprecedented half over base cruisers, that Further, our As you is visible is with revenue been message know, alternatives. the recurring, XX-point into have with unwarranted we XX booked predictable XXXX. sales, our our vacation repeat months being which guests forward is given is pulled XX% by given for land-based and any leaning XX% of over now an over the and revenues onboard well time at increase of with pre-crude

were continuing Well, and Accordingly, our consistently capacity our due year North of America European highest a brands for length, for fantastic Line, dedicated region? Line. brands are to to we've while the remains weighted by in world-class to trajectory strong And returning we at on outperform. is Cruise trending to efforts, are term. long Carnival markets this X/X portfolio discussed all they is next with that How Carnival our brand, growth optimization delayed Cruise our reasons

North gratifying So so it see nicely them is the with now brand. impressing pace incredibly seen to improving for America we've keeping trends and our

absence brands, yields In AIDA finally, again protocols our outsized the they overcoming too Costa QX, news. delivered impact U.S., the higher Continental [indiscernible] bookings am a like of to recent Australia. St. each the great the pleased than spike there's fact, European in Petersburg. And in from I and Australia, they that to of say felt XXXX, saw the in with response lifting in of

Our are efforts across demand clearly all working regions. generation

As you can booking see in our trends. our book and forward guidance, results, position our our

suggest seeing indicators forward continuing healthy that other also generate are positive demand. We we're to

cruisers XXX% prior First-time year levels reached of quarter. in third the

over myriad on multiples of demand fact, of of and that XXX%. X.X of in and and investments our generation far capacity all effects running million so lead search visits guests advertising In cruise are at growth. very at Suffice building. our time consistently say, this is funnel our over will commercial it XXX%, XXXX ongoing compound should running search are natural Web enhancement well activities The first we've keep to is at year. their levels. of at taken Paid XXX%

our also We're and new creating excitement destinations. ships new around

range unique an This expedition come unparalleled second small custom-built Seabourn to quarter, submarines. Pursuit and ultra-luxury XX yacht-like with have Pursuit. like our the guests features we expect ship and activities person expert welcomed of team Seabourn ship same marries expedition experience expedition

We Miami. are her showing later forward stop inaugural off looking today to her at in

in Celebration of new expected the Key about And around embark Bahama second XXXX. are of to news Grand a we drumbeat half on in our destination

departing ultimately Carnival of to different opening Cruise from home yesterday, XX Line ports. Just of the announced X different Key sailings across Celebration ships hundreds

have for amazing fantastic details more guests experiences destination our You'll stay expect. tuned and the on can to this

But ports people patented strategic designed the for is our Fun, will Celebration so and Carnival's win-win-win carbon not of brands and for hosts, a for advance also to truly many deliver our our close the the is guests to of efforts. that Key only what say It's can home our reduction of great I Bahamas. its location fuel today environment,

the Turning sheet. balance to

interest we anticipate liquidity, remind actively over been $X peak just debt improving that down have managing of take naysayers stated those X and debt opportunity under already I'll counting. to our the with return pipeline issuing strong generation our reducing in seeing we That with that this equity. performance, meaningful expense, year positive as ways and still and cash We ending billion XXXX. the cash billion the to we're $X.X and free reach billion, we ago, $XX off we incremental amplify reduced reduction opportunity. go debt newbuild confidence have happened recognize should builds certainly in months our demand a investment-grade, leverage metric without to The flow to said, flow

again, Once asset, this the greatest our attribute quarter our I people. to outperformance

are shipboard travel attract of course, our strong many loyal supports of generate along agent all demand stakeholders. our team and guests you, exceeding other our ships, guests' guests and and the investors, our who that our members our Our expectations, team shoreside support with consistently new-to-cruise partners, from

while deliver XXXX. mission with on I responsibly purpose momentum to do vacations motivates honoring that company at of to when work our extraordinary guests sail, privilege help the I place all life to providing is head behalf visit strong us them happiness we jobs think integrity XXX,XXX speak and we well cruise our and members I it into can a will we ocean touch. every a keep us team say whose of by our to unforgettable is we It as and and

that, turn to the over call With David. I'll

you, Thank Josh.

prices, in with net give stated. summary costs color quarter full of third on XXXX I'll will I'll my currency start without results, our then diems, net a fuel of adjusted cruise constant our to please today some note references September guidance. begin, XXXX I be Before ticket per yields unless year and all otherwise

along will things And advanced position. to few provide will financial recap with of other finish describing I up XXXX. I position, consider for XXXX our our a Next, cumulative a book then

things: midpoint indicated, net favorability our Josh of net the achieving XXX% our our quarter in our we ticket by of for outperformed from range, June exceeded million nearly quarter. June X higher As guidance The almost revenue income midpoint brands million our on guidance $XX than first, adjusted per $XXX as of while was X%, improvement by driven guidance. better occupancy, the outperformed third diems a the prices point were as up

positive In revenues fact, to billion again and record yields XXXX. net of once compared were as $X.X third quarter a were

during gave the runway debt, cost highest expense of to $X.X and Second, favorability we interest refinancing of us we an had expense. of billion quarter. core in net our which A prepaid billion million additional $XX the reduced successful debt, $X.X interest

customer the Additionally, of taxes we quarter, the additional contributed to interest to income interest generating than also favorability. favorability fuel and income million had $XXX And company million depreciation overall during final reserves deposit this third, of income forecasted $XX rate this piece. higher returned drove in consumption, and

September give year Next, full on color guidance. XXXX some I will our

we For the the versus our be prices $XXX the full fuel $XXX guidance the an million $XX XXXX, loss of currency million and net guidance, despite adjusted impact the in of quarter. midpoint to costing fourth year midpoint now unfavorable expect net improvement higher of million, June of

driven includes over $XXX full and actual X million forecasted So things. guidance improvements September our of year by

million full year. First, over higher revenue of for $XXX the

compared for third front, midpoint expected build net previous The fourth the we now is X% of a approximately quarter range. pricing strong higher our to to per our XXXX, than to on point be XXXX the expect the On full which guidance improvement. is year diems one quarter up

net improvement forecast per passenger to revenue the the on previous guidance diems expect to net both of X%. X%, a in yield driven For net diems X% sides over versus by resulting up is we The fourth Atlantic. per be in quarter, now our ticket up

we ships the We in revenue our onboard included a do have strength in consumer strong guidance. we experiencing other seeing see previous our of been the and continuation the onboard are trends given

will XXXX, of second, very $XX fourth quarter favorability be well. expense to half the the quarter. And in trends million of continue our quarter were third forecasting efforts similar benefits as fourth as into the we are of The net and interest deleveraging similar first to

the previous range, expect the of in costs favorability be end somewhat Furthermore, income by at but we depreciation to and tax without consumption, do fuel adjusted our cruise guidance mitigated expense. fuel high

cumulative historical The XXXX XXXX full our for book to above position is Turning cumulative position. well the advanced prices the range end higher than advanced high of book at levels. XXXX year the

and curve strategy to company's aligns the net a optimize few for in This XXXX. length to yield baseload management the bookings, things yields. with booking now And consider

X% increase a XXXX. We are compared capacity to forecasting of

occupancies deliver to for to strong XXXX return are full compared forecasted the improvement yield as We to XXXX. with levels to net historical XXXX year expecting

positioned higher pricing than time year, well are sell remaining despite drive of X%. inventory last to increase same capacity the We a XXXX with less to

favorable impact its opportunity trends, revenue let's also cost. on to While the will drive occupancy model remember

For fuel XXXX. in X point up could percentage X in XXXX without drive as a costs to compared X increase adjusted points cruise example, percentage to X to occupancy

addition, In XXX we comparisons. which impact XXXX, an of in days, XXXX, also expecting increase versus dock are cost dry our will year-over-year XX%

We capacity and inflation be but nevertheless, scale from economies decelerating cost of somewhat initiatives. mitigated these cost optimization our increases will expect and by inflation growth various

position. our up finish describing will financial I

balance expense. In billion XX% debt by X We peak of are repayment the efforts nearly $X first we debt quarter our aggressively from XXXX. and over interest accelerating our or reduced just months, down our managing

in of less We the I X with year billion over is ago conference debt, to $XX path months our forecasted less a March call. than $X.X which end than are billion during

was debt with return our confidence company gave almost in third X repayment. lowest quarter the years. about out our deposit our the interest successful along priced Our the which accelerate rate reserves refinancing, optimism any at stretched future to maturities us given to cruise This and of customer refinancing

Our towers of in have through well XXXX debt $X.X and XXXX. next maturities year managed only just $X maturity billion billion been with

X.X%. interest forward, back XX% of expect path durable our And XXXX our I revenue investment is in debt adjusted free addition, is increases average substantial debt actions, our In in looking drive and to our and approximately because cash flow rate to grade. our beyond balance portfolio through on fixed down growth

third Before remind call for and I to our turn release press presentation. operator, quarter you let to our earnings the over visit me website the

call questions. the Now operator, up let's for open

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

Congrats well. on the outlook as solid quarter and

until to I year. yet. what seem you're give sure you some both know off not guidance year. going want give very like booking did December, the And you March remarks pricing don't Josh, in today, look, and even and on So XXXX to which this color give I'm hold his But environment, based seeing prepared did strong around you're in David next into guidance

how anything about this present headwind pretty the And terms still in good But handle from you kind I a on high-level mean, look, pricing it side you side is the of year onboard as this is like us the you're about we biggest of might a thinking think those about diems? up? of you perspective, sounds think start help 'XX next to or at way at point. as can with there shape per of maybe kind probably things unknown the point have

given. very first and XXXX for being we that the thanks Steve, call about haven't guidance

me Let start onboard. you with about what said

last we hasn't X projected in onboard about the over down. fourth spending at it been us if consumer and gone the I quarters quarter, look encouraging the thing think has is, what with the you what

go percentage bit and down of in same what looked So because a here But and haven't the that literally, comps XXXX back up quarter-over-quarter. they're they as were slowdown. quarters like that amount percentage-wise world today X seen there we And the ago. a spending might

macro in business part going about that's confidence feeling So we're economy. in gives that's and us on of light when our say we pretty is whatever very good what encouraging, of the

next yet, the the us to I'm do. to the is at but what so of comfortable nuts not giving year, respect XX we not we're and path. going good on With points that our expect being really right does bolts, to ahead deliver ability get We're guidance into pricing, maneuver to which higher we're business, booked a on amount give yields

try know Okay. you And going there, but I'd I anyway. I very probably a answer detailed weren't to give thought

So in the for other think David, another a side on 'XX, if for to the like X% I ask in to of increase that's question if to factors. cost of which and kind cost I'm a you -- said try you something increase load the X% that you X% one and mentioned side, X% going get can I to equation, see

just kind with dry assume coupled which you get next we into back range you the communicated have dock days, that year, of pretty in material So XXX% before. increase XXX%, guys

know As guess a to figure kind X% that's going X% we not Is think next low? that either. about year? to too here kind next what year, I it, probably in Or give I'm increase you're of be is I out. trying thinking call up detailed that a answer low, about should we too high? costs that to But of

good elongated think The right? we what booking from tailwinds another and much working try. look we normalized So doing points headwinds, going, If the XXXX, incremental we're good generate as of overall, about pretty to the X right? close all, evidentiary to Yes, amount have history. higher got what momentum How incremental occupancy starting it's our and that's at or consistently gap. of we've try XXXX, in with per pricing First are are year a curve, this. best the about as book says we things been this demand position that we throughout diems that

for that full versus to given coming approach, portfolio back to discount. for The on. summer a be I of should were now really don't what concern To year talking Continental year brands fantastic hit this applause say able brands congratulations ago. be is and our European they yields to our 'XX where European be some used to who are around to Europe out. power expect a want were many as been We've our be quarters. pointing about occupancy this And you We positive

strongly that brands that particular our about. raised very And dedicated and our we markets to approach being despite to European all been the about feel have concerns

time, on in you will half were. our of do The of down first because, rebounding tremendously. ship been to has Carnival continue Fun, second Italian Style get coming know, trade the to European as have expect to that over a lot back brands the did doubling they claw next and year, work where Costa we're same Carnival. the to At with We

Our really commercial to testament which driving team first the doing. work is another our our are growth, that all is timers

So the positivity of on lot there's table here. a

we've XXXX, them as the well. back position minuses? impacted mark don't put Ukraine the we don't with to move China know best a industry. course, people to and still that I hope outside But we still We certainly think what's by is the were how the their that planning to that serve in our Of have War. around Corporation. We Now way expect are question itineraries come of Carnival for assets unfolds proven that,

that's but David mentioned inflation. decelerating, inflation It decelerating. is; it's still absolutely,

all how will activities dry the we So we'll And that down be exactly do are And We're mitigate have tried to heads to can all and the days the obviously our have dock happens planning with cost the for at we that through be to be we phases XXXX The those plays increases, going play. macro out. figuring what cost, which environment we'll XXXX a quantify see where to in cost through and the you. planning will going brands now we're beneficial see us. how right of detail with in occupancy for and how out we're actually time. for David

positive, good a feel So very directions. both so... about I there's in the lot

of went and only some what through puts takes on Josh I'll and the and add he Yes, thing said, costs. the to

On the that's to pre-pause, to excluding operating on And costs, XX% existing capacity add the to that ships our overall than remember, quarters probably the three cost XX% we on the a were increase, fuel new structure. more to efficient the maybe point days, X to point of say fleet. dry used going dock

But have it. remember, we did

so it's that cost less reduction been economies existing increase. cost And of or for math, remember, X% probably operating you scale the result that, you than if old as has optimized. a probably But the operating basis. get fleet would on of the a capacity do on ship about And the from the X% our

together, at and puts this -- So point. takes prepared giving guidance put those We're not we're all not

a And month brands some structure fourth the we're going going -- during hopefully, all in that cost to everything. quarter, I the say next And fact, the spending will by understanding we'll better the for of to at our better idea plans, have with through XXXX. be overall as direction their point of

another won't and 'XX, guys. question there. I'll ask Okay, on stop I

Thanks, Steve.

from with Our Patrick Scholes comes next Truist. question

Can you hear me okay?

Yes, Patrick.

Yes.

Great. Great. Okay.

believe talk a to little this when as of Let's -- customers. know fuel. past, I a actively fuel I Is around. bit have your fuel you have I that costs your one I a about fuel in believe instituted believe might in time may the you doing you well? surcharge -- spiked surcharge you consider competitors is considering the something

you We off take term, the table. change. the anything certainly expectations retroactively are table. Yes. the norm There implement to the although in about something the don't It's off what's certainly have not planning Obviously, It's that of certainly customer. not go in wouldn't near made too. to that we're of our be society could with considerations

bookings. you're forward about talking So

So about million -- versus And estimate , even profile table. and compellor we because we can this the but take is though, wouldn't fuel focus no us off reiterate, a is water is. line like where And thing in looks really, $XXX surcharge XXXX hot one year [ do, used efforts. that on all those it saved that's what matter our of would less our bottom ] the what the anything temporary. I I

long-only worth a volatile earnings. long that in possibility a the does to if hedging it. dollar volatility it for One then certainly is the question don't question, in of volatility And it the in don't hedge? similar stock. I the when brings regarding is sort actually also here. I get long-only oil this investors be Certainly real a may pushbacks a There's Okay. that Why And gets like the you of high-level it more But stock one term is Josh. they day-to-day fuel. cost and have from base, investor a understand it folks

on hedging talk folks me out of sort do it? why about to Just competitors hold when you not

table, I'd other same get take hedging. way. surcharge, a question -- the which Sure. anything fuel off Well, by is the the it's saying the not spike though. when including get only when thing as the question never start it's We We when we don't prices going

there's think bit on on of putting little do depending -- I of So or not the you a a it's benefit you are are hedging. to that question that environment? either wagers Do a you not -- going

we've the I time volatility buy in empirical the share about flow take might to you the at I make it discounted volatility did value the ultimately, dent X% away the look when of because long-term we a back, though part. done cetera. mean et day-to-day studies generation the like one, price everybody last grand scheme even else. of The doesn't firm, cash only added it it

it volatility, cost consideration, a of So of is is the as the hedging any kind program.

that, has pros So continue cons, all out the there. we've our and we wouldn't That's at where now. when that been haven't to But But just it. the look we become say laid far, forever. thus we'll are I answer

fuel go nobody like Understood. questions can get ask And when down, clearly these. I prices

from Our with next Barclays. question comes Montour Brandt

wanted the commentary, bookings a Josh. So talk about bit first, little I to

up trajectory, et cetera. us you loading, just had bit some sort good guess term give 'XX. do price on to points the you a so You hood and I'm question what you strategy And do base the the little what you just talk I that volume feel is price on great that? maybe qualitatively Or give there? you now guys 'XX you and sounded management qualitatively, gave you think And sit the you of have success that? far open revenue the about to had to very and data to just up on where Do done gotten about bullish -- for do some versus used

Sure.

points plan absolutely -- pull higher XX to pulling at part prices. we able were is and of this So the forward by

was the if place that about position by look sacrificing very mean Now nicely time does that this we booked you pricing pricing are to price? year, in at think last the you for got When what our we higher. -- is

volume the And the by the that's so how bookings at is been end. And avoid you it's you the forward, point pulling playing manage out. the discounting

And very so encouraged. we're

That's Okay. question, one more regional pricing but a And then great. just of breakout. more

diems of that your would continental that does sort is your mentioned capacity something should material be European per doing closing to question is, which of XX% XX% me capacity would the ask to or that, versus see it? mean were America is, North positive index I whatever now its gap 'XX? way currently in guess like summer. should the the way is see that be you tailwind. the What You I to brands, or That on this it a that think? And way what -- Is the you

in capacity fact number making is revenue David looking the we're the so Well, to year. didn't I'll going to trajectory. do ability look for yields summer for because that and to of chunks are yield for in of the good think, yes, ultimately, have testament the But percentage their you. David be that big give this the to they're is that But the up first we're exact quite half encouraged of our I here they European positive, performance brands. a

So...

[indiscernible] specifically is... for the which Continental European brand,

Continental brands. European

All of brands in our that is Continental U.K., our a XX% I'll European capacity brands, calculate But that. than the including the Go second. less is year. ahead. this of European

closer to XX%. Probably

diem Okay. all But was about Europe? comment recovery Continental of per or the

this -- would AIDA. per summer in I I about and fill the specifically yield and the Costa blank. were diems the say can Well, comments were well,

this XX% player segment other European The big had is our year. capacity in obviously a increase P&O They Cruises.

their are is can't and that that can their you as I say occupancy But absolutely tell well And that's were and way, on yields higher. so their I they expected. back,

'XX. Continental European XX% brands And are Yes. in

with Our Farley Robin comes next question from UBS.

comments One 'XX back of Two things in years. strong was strong And I know for is questions. yield. adjectives and a comment there's think yield slightly the about and improvement. And the previous to just going I glossary David Bernstein

on math back the points applied? price just a year-over-year. if don't think know to being and high seems there. has you recovering don't if I then get top help your glossary about maybe mouth, strong of just yield I you that, is like could to occupancy I mean, what mean, could of remind increase full your want single-digit So be it but us at put it X And us numbers David X to least you in occupancy I your to

David I told strong. don't I you have glossary. just

increases -- I'm into go in yield historical far So a for as But to back both XXXX. improvement versus go I stick looking occupancy things to that. getting will of going for would will what year say as full will as levels well price to we be combination as

Okay. All the you also, know amenities talk of not of amenities. when out could and about about Key. since you're sort we Celebration right. of for wonder -- cost might I I of be will sounds -- Can you it at then you part sort sort like And what time the frame just hear launched and giving cost the if the

drivers private have been understand investors sort onboard real how other spend and think ticket of of islands I some well price.

details be And island? to for of your great more new so get sort would it of those

Sure.

experience. F&B, an Cabana for monetize the private happy the of any to out on we'll getting give addition I'm expect, when you, in to take we'll the destination, how start to So if private ticket it with I side other though, or we'll would more. Rentals, to amazing be able standards in coming be tell this will month, experiences. type comes that another ongoing, for The island be even such premium

but come, all And in so the more will plan. that's

with next comes Jefferies. Our from David question Katz

David, you there?

update low-hanging love sense. the minute are just next unmute. focused that meeting about but updated quarter, broader while which and perspectives a is not talk execution just change, Are some left an back? talked some you analyst I operating improve a about I'd or you that things on this Josh, Apologies, to to a things in around what wanted the there potentially you much can fruit at of so for quarter,

just focused doing revenue They're their and themselves for our don't catching that they're are Cruise results bookings, do Carnival more techniques, I'll generating leads is give are here. onboard. better market. amazing an generate marketing you they we've focused And Yes. up. had appropriately quarter-over-quarter. there's their brand. I in because on on the is overall, continuing It simply revolutionary they've to the to management highlighted, positioning that and experience which jobs brand Line example, brands by think Other that the And performance, delivering focused more on anything they're

So all incrementally piece. piece of things those are by helping

kind that commercial the we effort of our all teams on be focused their aspects to that that's brands of and business. need from And

to so that to And we'll that as on focus it on they so well. continue focus continue

feel I side, momentum. revenue the we're making on like so good And

David leverage look on that's efficiently. On more efficiency the to that and find we right, be other we'll for to scale opportunity of mentioned newbuilds, will fleet, how side, certainly ships, bit and the do benefit to source from coming for do there scale opportunity there's the But to purchasing, against things always efficiently ways that cost each existing on do our we in how -- true in. get us better. the always little maybe a are only more benchmark

next this more did Scale to to than carrying will scale. us did we leverage and increase more be gives lot year and going opportunity speaking, in year guests frankly then a because XXXX, we're we that

that encouraged I'm P&L, pretty be the and will So opportunities. up there down

specific And on just if I Got follow can it. up one area.

at about still and that is and a talked analyst where ahead bit lie the also. performance revenue meeting You what profit there? drive marketing, And to I opportunities believe,

we're are -- surgical able looking fair better about get that to travel them might agents, teams be. that, at looking at I there's think to utilize pointing to and and and more eyes say our that how advances as our their be I the more looking think for we're to technology opportunity whatever them and us websites, very to that it's and guests

So say I'd early days. that, pretty that's

And encouraged the to the shown even that progress, of like by We're though and we've things and marked or more indicators, improvement don't we've about very some it there's comes a run. to you we some stats really when room made talk like pretty some certainly rate lot conversion that. things as

Politzer Dan with comes question next Wells Our from Fargo.

the detail all far. thus for Thanks

spend. of that, along more in onboard accelerate with more Or relative it of can If that there It are you mix that just declined And real-time that in of terms is European? that little cabins? a function terms you in going the inside your on maybe Is question, about to talk there? pre-bookings of trends XXXX. can terms elements the forward? and like First a pacing looks booking bit

Yes.

quarter, So spending haven't the you on of it levels When think say slowed in quarter down. first the think consumer and But onboard this about quarter were the spend tried didn't spend, -- last about I where onboard right way. generally same. year, of speaking, I think I the I was third to this, the say second, state the they're you the of fourth they year, maybe

in slowdown seen the consumer. So profile we of haven't the a

lot day though far a per down. more As example, for spending and we per had over summer, didn't fourths, the thirds the even so as person -- slow

how do take a from I XXXX to of way example, today, the for lot the our year. the Petersburg, -- quarter tell As XXXX, compares there's that this the from in We we consumer different sentiments far there's in St. where them. will right, we that's of as third you, didn't from have from bundling,

by generated is, got at excursions not We of to level. the the performed that itineraries one all or be onboard and That top shore because have generated. we of that if get top, didn't the far, yet that, still high got spending

that hard more consumer the trend little about a it's be that to So trends. not be our X-year focused down. with gap slowing specific is on a I'd

for That's it. helpful. follow-up. my then just Got And

given make think, think just new tax? any 'XX there's we terms that of on tax in metric that way that, quantify to a the of as or there -- are about is Can admitted. I In progressive a coming EU it's 'XX, tons it you for 'XX, emissions, terms

Yes.

But at in the the the will given 'XX. and time, what as and as year XXXX, in looking our full go prices percentages forward. numbers which $XX So over everything the XXXX off we on itineraries keep depending point fuel XX% our we're of for mitigate XXXX, up for at and current represent improvements in all total and so based move of our hopefully to mind consumption approximately expectations, in conservation future some does that what XXXX, are and today's talking have we're we is consumption the of be those fuel in consumption itineraries the million tax fuel

going grossed is Got which to -- be line? that it. for through just in And flow the is up going me. terms -- it it and of Or P&L, that's the fuel to

fuel as our of P&L. be will that the Yes, line in expense part

Katz question from Morningstar. Our comes Jaime next with

on extracted cover Under there that And behavior on doing new guys the the was think morning, you stay release around and environment. if separate economic this can maybe key we hoping any there commentary consumer that you would I'm have I'm us? are Europe. I the were Costa and for press a and campaign European consumer of the some share just you wondering takeaways around there,

Yes.

already messaging, is about one brands their accomplishing hit So the they're Costa that all experiences research and really have into to team it ways to. fantastic. and those market will on the we're their convey because of trying is the Mario market Costa and in segment President, in for proud Their continue really based of was leaning that's product the rebound, whole Zanetti, particular his and on to been and particular

matter onboard. they're right to a to way then the to we how people get going of so spend onboard and right that that want always it's the do understand, messaging money So convey pay then to

actually marrying team we're some together. the there's this make be of things And sure So external in that a and those output. to that Costa the help will up put lot work

So excited that I'm very about trajectory.

there of better consumers? more a brand. Okay. consumers value that And earlier, provide I'd out the the younger business? curious mentioned you be significantly were about you for had How maybe Does that lifetime that? can think break coming we think into a And number I the there new if should guys Are demographics?

have circle So the I -- with advertising, being that you color, from kind she perspective, up you do they're and certainly you. my efforts part, that ready, data, we more if if we'll give of the and in -- part don't can again. to about, this just can for sailing But I'll up in some try back

and family telling getting the your ship how repeaters get their amazing and attracts friends off newcomers. you is, it So simply

about is quite the have that encouraging we're that cruise in casting starting that really activities context growth first And consistent X that been seeing coming that all loyalists a has pay so been to we those if quarters, we've fact the cruise or in first think -- and that industry off. industry, vacation And of big means to been from the of what's over think really brand last are the there's our you in ocean. the to

bodes that So very well us. for

Assia comes Our from with Research. Infinity next question Georgieva

a again, also Or Ticket a really into of nice the that curve and is these great is stability? a on recovery QX while booking now should replenished, I greater wallets had even elongated think provide of the fleet and being couple XX% sailing. offering be bookings outlook year. less gone pre-cruise Onboard, Congratulations should questions, both entire upcoming more consideration? become of something strong, we for would quarter that and the a we full Josh. reliable have has of a gauge mode,

Sure.

been -- seeing has improvement we're increases so you first onboard quarters for thank ticket. that past -- component think outpaced over in the of of the The I the all, certainly, our the several comments. the by

piece is I able ticket so your really larger a been And what on, our the is think outperformance to encouraging. was on point, net which of see is to really, whereas overall diems, component price onboard per the coming we've

options the our things, and though the in confidence spend on a gives us constant spending experiences. fact guests of again, lot The to onboard doing we're that levels the right providing terms, that, has for right in we're ultimate remained absolute

think pulled our forward. spend for mix. the to pull And I as XX% the of so it's actually a onboard forward ability onboard very And more good us mentioned, you spending,

XX that. was While means below in lot to room XXXX. that's points points, of a back of huge an increase That it awful do to XX continue still there's

And so felt nicely. I components those think have very

to investment probably questions, maybe year Should Great. $X the two about And 'XX? more David. very to for to a of billion get we grade year-end by billion quick $X debt expect repayments

in is about improving have reduction year. given by combination the talked see and XXXX. you're by what XXXX, debt investment-grade type of detail we going haven't EBITDA to we But the metrics So program,

that delivery. in for X ships do Remember we have XXXX,

in 'XX, ship. probably in than 'XX, debt And on any we 'XX so will X only and we reduction have order. ships And that have 'XX, be in less where 'XX in don't

you in that throughout mind keep years. as just math build the through So the

accelerate It over that the debt reduction would seems years.

Correct.

restart during somewhat having Okay. And -- quick I months. some is think the history. winter on, David, elevated levels if NCC having of one are you're Net the somewhat Cruise brands especially that at just European may. the I building -- fuel question, relative to ex Cost, other occupancies And lower

sense. makes you fuel coming increase in But do which XXXX, in of ex net are up expect excluding that cadence docks, percentage decelerate? cost that dry the So to cruise

So let's to XXXX keep in are compared XXXX. mind being numbers the

is X that years, So X. not

so back And the to go year. comparisons, when X to we're going it's to just get XXXX, year-over-year we

inflation. And inflation so the as it's X X year expectation of would be only of to years opposed

XXXX. about in you and that go as keep mind So through think

is the yes expect it's think year-over-year the say absolutely. don't XX%, this We I had fair -- yes. to answer like we've in year anything

with comes JPMorgan. Boss question from Matthew next Our

loyalists Europe? underlying in between guess, America to that just momentum cited, versus so that relative you're customers and through seeing? cruise what break you're September you demand seeing in trends place So new continued the that North are you More elaborate initiatives these could to maybe retain you down I Josh, to seeing you recent new on it if

in wave happens. We just wave, call any have to based of hit then put not talked broke it's is about to I about -- can't we first in don't just We've longest September I going context. you what the can record breakdown never wave I into ever think -- we right, QX. in for loyalists. record that tell We QX, bookings or because sure important when the So And I'm about a it, was -- is QX. data we're on which history. And I probably talked what broke the timers record right? I the that in how But

on being we nicely to the driven look our is you And really the actually, up X American of as also brands European very first when And by it's But September, positive. European we're at as expected portfolio weeks North the do. are well. coming brands.

about And good talking that in so we doing, pent-up that the all it demand slowed September. that work we've hasn't inherent our that brands tap. and to been been the can attribute We still down have

yields. we're thing to optimizing that trajectory encouraging on the cruise, revenue to the focus it from of means brand and back we the that is And and normal to effectively with because really new new and indeed can perspective,

hasn't it stopped. So

Great. And heightened then, be around to seems takes that David, the sensitivity. just to circle and back on puts cost

core economies point around opportunity. said X growth, of heard So partial X or point. think X.XX cost you think you said to scale I then offset right, if X% maybe X% to But I I it the docks, plus of and reorganization offset is dry the efficiencies,

missing math, I'm X% here, takes to cost So if increase. net maybe there? total items clarify items, puts just that of Any the and my about these you some it's

Inflation year-over-year.

turns be 'XX. for versus 'XX inflation out whatever to Just

next question with Conor from Our Melius Cunningham Research. comes

realizing so all But are a spend? any Are I there's change at obviously you Just around prebooking on. high I'm general. been seeing effect at consumer. for I'm in been just -- And but positive or being there. really even demand if if or there's concern onboard you've any strong consumer quite just curious the that and bookings. in like curious about talked length trying one down the any a customers just trade the change maybe on quick realize records, in to understand changes there's the

it The as just as any is We plainly that's sign to can. has to we're slow inventory, down, slowdown. of seen trying have not it see of it. we slowdown We're out as only we say No. Sure. running

we feel good. So quite

there's For 'XX, lots we and 'XX but open of cruises have ahead. XXXX lots that way booking are so is, for and people of

we've think for operator. got I time more, one

with Stathoulopoulos Chris from comes question next Susquehanna. Our

this work Change? time? we the Costa that do And or over extend today, or new we brands other to strategy campaign announced advertising and advertising on Cruise should as how enhanced expect messaging the to evolving you see Josh, through SEA

No.

European This bespoke answer no. guest is So Costa, base very they're is and to reach. trying who for much Southern they're and first, the

how It far as And what does, is said, falls onboard. not. way mean, out, general do already work going I its this Costa's already certainly into marry to they themes. So I as this as

it's just come. and make is this So way communicated sure the to right that more to trying

So thanks, next -- and say to forward quarter. that, sure. With everybody, you looking I'd talking to

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