Carnival Corporation & plc (CCL) 20 Dec 242024 Q4 Earnings call transcript

Greetings, and welcome to the Carnival Corporation & plc Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Beth Roberts, Senior Vice President, Investor Relations. Please go ahead, Beth.

Thank you. Good morning, and welcome to our fourth quarter 2024 earnings conference call. our and Weinstein; our by Officer, Chief today Bernstein; David Chair, joined CEO, our Josh Financial I'm Micky Arison.

basis. please will I ticket begin, on today's press the we note references of in some Before to be per All our forward-looking diems, unless net this otherwise statement call currency per adjusted diems net on constant yields refer yields prices, be be will Therefore, cruise costs release. References forward-looking. to in you and net without and to that remarks will fuel will stated. a

associated comments without and earnings income, and call investor press release. in also financial Our defined may will basis, EBITDA, that, our where also over to visit of other in references GAAP reconciliation all A to Please presentation investor stated. All costs reference be flow to I'd measures most and fuel, are presentation. disclosures cash otherwise U.S. our an release like earnings directly financial the comparable adjusted cruise our be unless turn in free earnings can which our press and are the found. With release on website net press corporate ROIC, these Josh. measures contained non-GAAP our

and and a hard-working an They dedicated bat, And have right team, high I'd even expectations. Thanks, best strong off leisure. finish my Beth. our consistently incredibly outperformed the We all the efforts delivered the like had to strong travel of of own year. results to that in thank

quarter we've together. We and of firing a is am portfolio cylinders, been delivered to very to phenomenal out what clearly year. global able Our close accomplish I another stellar all proud on

of alongside X indicators, strong Xth momentum been this continuation record for net achieving prices. income record trends favorable experiencing Full up all-time we've from outperformance an almost than delivered and we a years. Fourth billion majority deposits, was throughout and booking cash higher year. operations fact, quarter, that $XX Yields driven nearly strong consecutive record customer million the yields, diems, and broad-based. finished a quarter than million was the In this across hit operating the with last forward improved by coming $X XXXX year environment income basis original new of indicating all per points down like XXX $XXX our demand The XX%, pushed strong by year of in the P&L year-over-year, expected. attributable and a guidance, which high over closing elevated was EBITDA driven produced high better over year. $XXX billion. Robust this all-time yield portfolio, the of and year increase to the the the our better full increase by to of highs demand demand Encouragingly, revenues revenues

between all in this, up trades of and were levels prices our XXXX, digit For major spending each onboard sequentially to And throughout of the mid-single mid-teen quarter percentages. year. accelerated brands top on actually

saw for the we an came in inflationary year executed upon and cost savings identified points XXX than additional and Additionally, benefit the guidance environment. unit original our cost as initiatives better basis of easing

shareholders and are $XXX already as XX at our in to we our comfortably change step of form SEA outset, XXXX part X and for ALBD our to the XX%, both than XXXX both the financial the And a growth bottom about which that above of to foundation, over X%, from for translated After beyond. At of million with and upon capital, on December shaping rates ROIC. point our XX%, targets, already XX% we're cost ending long-term almost the of our toward is targets, of calling in cost $XXX XX% highest the additional years. and delivering in just seen guidance compared exceeding the lay this per go, ROIC exceeding to ROIC X to with achieving we'll Change XXXX we of build has and value increase company of XXXX up All already with bottom ALBD in line outpacing an EBITDA these unit be be growth of the the would and another with year again million far starting improvements per EBITDA pickup more X/X the line. historical metrics our to books, incrementally way yield XXXX down, delivering year banner growth year one

to XXXX less compared actually to fact, In higher up inventory volumes Despite continue year-on-year same position. for quarter, Both volumes year, booking higher price the the to quarter. strength the and reflecting even sustained higher and each break American sailings. sale also levels book we The last each of XXXX at over reinforced the managed records, core at prices quarters at than same election. Booking the each year. XXXX, were ongoing and during their longest are to demand X higher leading prices for this thanks North our now booking All period record. XXXX for out further trends segments for our increase in for demand as last to including advanced are efforts better occupancy time for accelerated outstanding even quarter record-breaking deployments windows also quarter. I on that book report past we and price European our actually achieved position, the both the our booked are of advantage our booking time at can record occupancy

trade if good for now to a mind, execution keep are this operational results year, future are sell a in us book sailings by to customers want that driven our less essentially improved space available. inventory with with and sail being amount And while our and I enough still same-ship booked XXXX stress XXXX, for you brands there's cannot across basis. position and on our So to partners

get don't great. Now wrong, new me are ships

service X third we the Excel welcomed class Princess out Cruises state the vessels awarded Traveler's Princess, ships fact, next-generation flagship great Nast Sun Condé new that is year. of first Mary in and but spectacular Texas. of to in beautiful out entered venerable Line, the of Cruise a Jubilee, megaship In for addition Elizabeth least, was other Queen XXXX just XXXX. Queen of ship X Cunard's last Carnival the and the this year, Anne, proudly Queen sailing Victoria, XX came Queen X. years beating megaships amazing Carnival And all not

unique we're the were up command driven almost portfolio across do ships was premium, excluding of markets, our new new through of ships execution been XX% forums. We're improvements guests majority the above yields crafting builds, tools our cruise because demand world-class over away improve well honing campaigns growth XXXX. pipeline existing to successfully that our our growth each efforts brands. to from While still them a fundamental the vast land-based nice our commercial target and by both for alternatives. XXXXs supply directly modest talent ground-up of on most space. We've demand across Even yield investing brands' achieving speak marketing and new enticing in That's in effective in the

optimize limited web year. At new-to-cruise double-digit marketing guests capacity continuing In are both search we've from our and that and outpaced the the fact, management of Simultaneously our been same with techniques growth funnel past our to booking spending closing prices and far deliver paid demand up drive to deal our yield and efforts repeat to consideration natural top growth, keeping sharpening the and the ticket performance augmenting pipeline visits, onboard new curves in were full. percentages bookings, our of generating time, higher. each this

working creatives already brands. featuring in even helped volumes of already In its more incomparable While marketing for spectacular to and clearly store on working, Lasso Black through sure We're help guests continue Cunard stay yet with to tuned Princess, we have fam season, Monday are Princess' cruise from to all increase new also in enhanced take vacation coincide on working to wave an excel. of this U.K., launching fresh all globally. period. for shortly have strategy Holland awareness produce reason case, and Seaborne booking another AIDA, period. We're record new flight momentum. We're destination to our and already new launching to across month. Boat Ted a the Friday and in actively these cruise Love Cruises theme continue us us, And with peak is the to all Cyber travel our that for Carnival, to consideration the P&O Hannah-Waddingham America take Costa, with efforts campaigns debuted campaigns aggressively it's provide booking and

these experiences that with meaningful These opportunity assets lean While in the we highest destinations visits rated to we largest strategic and X into we X.X Caribbean this are on by destinations captured expand operated guest million in with guest plans to and and believe a even retain, capitalize advantage. further. our have today footprint XXXX, owned amongst the far,

experiences. I Key on have marketing the awesome opening Beach from X This create Celebration for assets fun far, these portfolio portals we exclusive with excited experiences. of never While in our Club be, and largest have for begin just potential untapped prospects own destination amazing most multiyear Carnival-centric about historically, really we the months. our this of will focused destination about been strategy by family-friendly with as X in built ships, to have to more unfold our to demand the these

RelaxAway, on other can in and the waters, that destination Key a signals way tropical saving newly strategy. beauty reflect features experience are Moon the Celebration appeal. crystal known our and constructed dock get one that Excel and ships class more able to closest the Not will expect Half specific allow X you more exclusive gas destinations offered positioning future. more time. We'll Half is we this North will And visit guests even asset recently peer to costs of greenhouse destination be destination an only developing portfolio, with enjoying We're bars the idelic Celebration Moon already bohemian the will assets venues, include pristine paradise. Enhancements come for beach campaigns cruises. Moreover, complementary Moon beautiful change being for shift demand. Cay with will destinations the marketing natural and amazing guests Key, can cast immersed November renamed providing Key to wider these jewels Celebration in both emissions, feature the beachfront award-winning believe reducing exclusively private with will RelaxAway, and unique that on experience, new-to-cruise preparation help out our the itineraries guests variety these of about net these fuel better lunch destination's as seek be with the Lines capture Cay both expanded ultimate to the us and is Cruise our Ready intentionality days. and Half be this in first of island and branding side will experiences clear the only announced a beaches these they encourage We ships XXXX, our with Cay, for and by in to highly promoting rated Carnival Caribbean just to and flight in for the Carnival's of in many reinforce consumers created will the a actively way of including brands. a in the

XXXX, just ROIC to a it per our expect our target to target. EBITDA early, XXXX for full As is, we raising XX% ALBD shy year of hit XXXX while

So reduced front. in considering Improvement a intensity making incredible meaningful than this been loyalty more that emissions have greenhouse We XX% Despite that greenhouse was it's significantly and headroom forward larger we've we're our actually XXXX, we're coupled have we a provide we're time. And capture leverage In over debt goal fact more ship X emissions gas of pulled emission same on create lowered XXXX, financial XX% were for tremendously. to progress of years. pricing over have end our off sustainability has on cultivate paid of expense, billion previously peak with hasn't achieved X years, huge fortress. almost in tremendous shoreside under clear achieve made we without XXXX, levels. experiences our down about strides progress by $X all track by versus time, improved guest place, making demand the X% in we gas our the on in our remaining the to more we interest by over and to absolute just our rebuilding EBITDA, which, our course, improving XX.X% of the this target the guests. At amount intensity reduction the metrics we also and of

change the improvement be, delivered of in current immensely our to net to who will and a always each XXXX. Again, in leverage put to guidance who beyond. XXXX much been thank you success. us debt to reach agent Our this step travel and much so our partners EBITDA, And on set has closing case us members XXXX at XXXX fantastic so thank will and you have as our a team investment expectation contributed up for metrics to X.Xx have grade always in

We the partners destination we've investors, loyal guests stakeholders. appreciate our also support received and from other

efforts in with touch. With vacations forget, to main to them integrity XXXX call And these delivering place the let's sell, David. we and over people unforgettable the were ocean about the really cruise life not happiness every million extraordinary of over turn while XX.X providing thing: honoring by we all that, I'll revisit

fourth Thank today our you, of start I'll quarter XXXX results. with Josh. summary a

guidance. I'll finish some our an up provide on with XXXX December will full our I Next, update on year and color efforts. deleveraging refinancing Then

once as guidance exceeded was of The $XXX as $XX things: year. was than first, outperformance million by guidance, points up onboard outperformed compared better spending. our million close-in strong essentially prices quarter in prior X.X% driven driven ticket the we results. favorability September income were revenue came the September yields to Net to by as strength well X.X by in as turn in This X Let's again. fourth summary

million worth expense, tax a higher interest $XX third, income expense offset prices were per cruise of fuel X.X to million. lower guidance, day all was point cost which favorability was partially without available berth prior This in which compared And X.X% and September other year. a and netted came $XX than better ALBD, or fuel by Second, to of up expense improvement. the in

Per the record Strong and to improved customer the of quarter spending. allowed once sides diems, XX% ticket quarter demand record on year remind I and record deposits. adjusted you diems prior were record Atlantic, report which by us would up per over improvements driven last for improved versus yields, X% year, over fourth EBITDA higher record prices fourth revenues, records, again with onboard both the delivering

our will I update efforts. refinancing provide of Next, an deleveraging and

cash XXXX year drove from cash Xx was full about EBITDA This and $X.X of XX% operations increase. yield which $X in billion billion. over resulted flow improvement and X.X% margins of Our cost strong or a of improved

down profile. journey pay debt All debt on of us propelled proactively our this to and manage our

the from more with some off XXXX During of and included $X second XXXX, billion payments We capital debt, peak. lien secured structure debt, prepaying billion over of off opportunistically which debt. debt, over of debt we made layer $X $XX.X over billion, secured our XXXX removing our $X expensive paying reducing billion ended January of the

our X positioning down and Our metrics in to leverage just X.X the as continued levels way investment from achieved to ratio, debt XXXX, metrics to [indiscernible] continue We improve debt-to-EBITDA X.Xx net leverage us grow, nearly our in the turn XXXX a a to year. grade continue improvement path EBITDA shrink.

various With metrics, beyond interest with near-term on to the leverage and maturity refinancings. well-managed benefit towers towers improved for and opportunistically capitalize of maturity rates improve proactively managing our we while XXXX expect

both color I'll yield we of The yield our share full approximately sides a higher expecting our December XXXX improvement ticket higher components to growth, spending yields over all year top increase compared X on $X.XX increase to XXXXs a occupancy of with finish when X.X% deliver forecasting and improving an in result on onboard of is of Now XXXX degree, strong Atlantic. per XX% up guidance. with On to in XXXX. strong worth with guidance higher are the XXXX lesser improvement an prices some

sell inventory time positioned same significantly We year. XXXX last less pricing ticket the are to higher remaining to drive than well with

up to for $X.XX XXXX approximately without fuel Now ALBD per costing X.X%, XXXX. turning is costs to versus expected be share per costs. Cruise

return introduction Key our destination of to the smash be Celebration and investment. forward in Celebration Key bohemian anticipate XXXX. looking game-changing with July exclusive our excellent We are our provide will guests that We a hit on an

and days, comparisons XX% XXX will overall offset XXXX, expenses cost also there and an approximately leveraging in $X.XX by cost a by while year-over-year inflation dry impacting The in impact for deleveraging driven by in rate fuel about overall operating by we depreciation per XXXX, XXXX foreign will of and point are efficiency expecting expected by were of initiatives for our items remaining $X.XX the per X.X from However, increase further our scale. share, comparisons by refinancing we versus other is from X.XX impact exchange our cruise in impact dock In the per expense, benefited by cost net way income interest the our share, impact industry-leading partially favorable lower that $X.XX to is point. In of which An point. year-over-year are goes overall prices X.XX our advertising expense per price favorably currency offset expense improvement costs approximately XXXX, year-over-year partially X.X $X.XX by net impact currency and share. The efforts interest increase about destination fuel increase with onetime by change and several share. higher an comparisons point. about

Allowance EUA to from forget European not emissions XXXX. XX% Let's that or in in XXXX carbon the Union increases of XX% regulation

we from a shareholders. with brands expense these we our the of as per move leverage holders debt our while is factors about than confidence As fuel grade over strong process of continuing fortress year to continued our for achieving during XXXX our years down would metrics together, putting value increased driving further versus investment is full rebuilding per share. XXXX $XXX execution for financial our result, of operational demand of results along and road, on $X.XX more financial the share. In in transferring couple back to next the our year-over-year EUA expect impact an all guidance $X.X income costs net Robust billion, be $X.XX summary, higher million improvement or the

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

question Boss coming first today Our Instructions] from is from [Operator Matthew JPMorgan.

on congrats great quarter. another And

you seeing? share, So company has and speak in that optimize yields the the And capitalize banner Josh, the you with 'XX you've the last across and could onboard X to to shaping you're elaborate initiatives spending positioned be could take you year, laid another that current beyond? organization to 'XX drive which to the over years, up in you demand on foundation think on

talked past the those the and group of brands, the I biggest probably about brands. in back fantastic a people we Yes. right doing the leading at leaders in X a just as the leaders thing years, for are look bit question, Thanks the guess if we've leading Matt. last place, was and of getting restructuring, fantastic

closing levels. yet is, ourselves to down On really with immediate brand put the of talking in think sure commercial all expectations actively of they aren't for making widening from few brands P&O up the ships up relationships at really who allocating top stuff it's in space, we've own term, last management. the in portfolio differently, are years, we is while the those thing be managing ramped just where last Australia, a in bookings. around to the the I get where advertising is to The about marketing market help scrutiny I would the way to the where moving the focus I portfolio assets side, of trade the case think amount funnel should the brands highest capabilities. Probably Everything us about been the our investing be our returns vessels, been improving the get we've great how the which and to to dividends. in we're We've foundation the and pay helping setting rest space, right? of that the think, revenue closer management the all up considerations the to have It

I further. are those those our got and people. brand in make you that. be our what to for that the having are the leaders So continue the management we've technology forward continuation tools, the strategy time, that in looking that's destination the it's a our with and things XXXX to We're continues going all to in tailwind At optimize level, that already commercial yields that We're sure think things investing progress. going really our are in heard to tools investing respect a to effectively long the lean we really to a revenue a base remarks, really in prepared and that of even space utilizing great we're

spending, runway more spend, the good of a knows, we've to As I continue the we've up pulling runway they the forward people we've got as cruise. spend everybody there. been they progress the got far get on making the onboard the the wallet OBR, amount more the around second before spend on as opens cruise, and mean which,

the So to hard our brands nowhere on those be are, of types could we're And again, what cap near that. working continue efforts.

enthusiastic pretty I'm tell. as you So probably can

of David, tell. cost break think so, tell. maybe about back more can of for quick, fuel between yields in thumb you I there's year? just a maybe envelope reasonable if I down spread multiyear? cruise that I components could can then, just help and ex this think maybe net if rule And X.X% a cruise to costs the multiyear, But us

Yes.

So about X.XX the the said dock days onetime increase my notes, Celebration in briefly, relating X.XX I just talk was were X.X to point expenses also was dry point. because the about in in and points higher I Key throughout was XX mentioned, point, company. initiatives from a really advertising X.X XXXX the items offset by partially benefit and efficiency scale that our other then leveraging the remaining of did we that and Josh inflation combination

components the key up those make that really X So the are X.X.

the we really as of there's I can I thumb any far As continue. believe think don't here. difference, rule do

saw you recovery was that Xx, XXXX, a As story. was in but it

yield to X.X is. cost Our what point worth between in of has a Keep a that the improvement. cost point a difference mind improvement double is almost and yield guidance point a

leverage destination of to should investing talked hard to strategy. revenue as drive the about, we're things maintain consciousness. And But as over our Josh management as time So work the itself. continue yields there in in higher help and there is all will well in, cost and advertising we

a improvement do in see continued we to So margins. expect

Ben Chaiken from is Securities. question next Mizuho coming from Our

summer. Key well of the you an Or Do Where up this And exciting, customers? is kind still of you awareness you later have like opening follow-up. by awareness still product? looks think -- I ramping? do appreciated that or Celebration then are it customer understood, this pretty is in one think marketing it's

ramping. yet. Sure. mean it I exist doesn't still Thanks, Ben. Definitely

definitely we are building We're the momentum response getting to still But is there. to with how see. which building we excitement. We're are So expected the early shaping up, bookings days. that good respect it's

exciting think these in now, I really really and there how part once experiences and there, it is off we're we do the right operating because optimizing a it, and enjoy takes having guests do we make from it's belief. what

So I to tremendously. will and let we've it think in get help place, got then everything

then up And Understood. Does open you destination a to Celebration this release you is strategy. transcript, peer a we mentioned this it. I differentiated with I teaser the know the bit little Carnival refer Cay, and Key? little Moon additional an referenced enhanced Or believe. operated of call, Got Can bit? in this a to owned Half opportunities pride an destinations? guests to

to trying and magnitude understand direction Just the strategy. of the

Yes.

any particular So a back let's from destination. step take one

an not that in awareness done And a amazing, think, the at on have of level what I for it better looks can guests only than a experience, I've some look pipeline. and vacation non-cruisers, than we the turning tilt my destinations into I the is decide raising historically, I have are only that's years, help think itself and and good better something we because cruise. that going a not time cruise enough to us, that for their others the amazing in seen I now but and own destinations doing are amazing several think do to job a on long take decision is destination and

yet So the we're to Key, don't a before beautiful. is the It when cruiser, Moon Celebration And a exists. not When away getting most you for location to because we're you're relax anything Half world. about change you it Cay, it doing one think comes the destinations of the stunning in head about it. know if is it start

with the change into experience not going natural day, able to we're is RelaxAway, about the as for and You're in is cruise looking is which And idealic, convey we It's the of that about the really paradise, that can from we're going is Key. Celebration people trying we're to right? beauty, away we're they to said, to it. the don't dynamic. And a great it who to that thing beach is leaning be that together. vibe get. And X different tropical those going be Celebration marry RelaxAway being to key, ultimate all things what

on both get very, different there. same exclusive able to going experiences cruise are be people So raise very will our the us, to that game and we're so to and

that And without there's own more some destinations things we the that that investment that to we with do can heavy of make part of more collection. exclusive

pretty we're excited it's days, it. but early So about

Stifel. question Wieczynski from coming Steve from is next Your

us same I for yield a might seems David, that your pretty seems now. for on momentum approximately X/X end or already much the we guidance pricing about we booked being like to when if fact say geographies. strong the you next I that just think like XXXX, all know have conservative it yield across this Josh you're So based call from have you'll but hate guidance X% X% or up the this, year it year,

XXXX? So close-in you maybe the of taking And a around ended give the around way, question underestimate guys seems we it if yield it's a to and that I be last whether question view for about another could little I makeup onboard X.X% it's forecast? initial you guess trends, that was the you closer whether think about up yield conservative ask if pricing does XX%. mean, us is, the color I -- guidance year, What your can opportunity. And which it think did I like

of Steve, all, the we a queue. worried weren't little well, first first were you in

XXX to sure okay. call literally you to make going we're So were

I the XXX your prepared Last guidance a I -- remarks, of to fantastic on Good. Look, in said and argue special. outperformance to And Good. not would team. to what work yield certainly also That is X.X% that to of what pretty by we it's give it I Good. proportionately voice. base was, want the of glad think our year obviously is was argue, a was hear points goal X.X%, of year meet So top I on meant based whole on something hard know, top exceed. my X.X%. and we basis

less are more have we full, because handle, up very the was or half like on occupancy. good full which so in I year that occupancy think, year X already yields a still we back improvement the last more where is percentage even always you than in remember, first we last of get. was at in much And So of the year catch-up, already points if we're our today,

the So continue we a stable look about Well, in than a I right? we're the X.X%, as working the you, bit we as we're and same optimize And onboard but at the onboard I little all as think side And a occupancy, and of much spends as no by it, There's promise our goal to a bit little it's is we'll priced work as ticket you were. and it's for doubt been it occupancy, that which to much fantastic. can. revenue hard is the there's place get is priced, can. when continuing. have of of combination yours, Outside hard more we trend.

SEA Slide good XX, then, if And color. That's we about look Josh, Change. Okay. at

it's the XXXX. in those to next even look per look -- hopefully You the year. your EBITDA we mean going you're -- like achieved I reduction But is ROIC at to well hit target, if those potentially ALBD hit we noted carbon almost at targets, going be as your

but So us, hit -- at start about financial investment out I laying know do of to community I seems another question some and you point? set really pillars rally Change to those like really going long-range do to targets this, think something SEA behind. is, important the you're were gave guess the you it To targets

get the you're about a as So long-term just opportunities little more trying to bit to thinking how here? color

promise trajectory set what motivate you, internally ourselves. for we get I catch set tell expecting I think we what we think same or so I can should rally investors, you Yes. ourselves the breath, the understand on our can we can team a it we And targets we of longer-term quarter around to I that we day Look, that for whether and I to like the be. can my -- we be concept, our should our when whether do there, wait you

get you yes, Change the need So to when $XXX we there. Carbon be we're We I'd can XXXX harder. be to income to will ROIC. in happen going to And get were, nothing love where we expect about say more where of SEA targets that we to get million to early. operating look,

we have a are, pretty good good, understanding we'll pretty where We getting what see but happens. of it's to XX%, and

anything about is Okay. one. real first the costs? we think the guide, year about? cadence David, else there think should got we've we Obviously, terms of quarter Got the NCC quick And anything you. should through housekeeping in of rest but of

you the is So I seasonalization guidance as we it would in dock quarters. the dry give quarter, is second days. you expect can terms do in higher that between imagine, But of tough

guidance decision you. see we've changes all else I between too, initial But So year quarter on advertising the That's to points some every and I call second because is if were, probably quarter in it, we, X guidance above full average can quarters. third the and made best be this wouldn't presumes lower. the the X.X surprised everything the will about fourth give

just take as So a it forecast.

Robin next from is from Our question UBS. coming Farley

get these better First for your this ask would a whether in Obviously, but your I not to and than Key, price guidance really Celebration point to guidance things they're see what much did able would really fantastic in obviously, how this or very about a add and driver, or expected additional want mentioned, just be whether you're guidance here and to things successful to at to it expected. feel you X onboard is you spend. are be upside? ticket

in I I'm know how help cruise guidance your points. yield it guidance cost you your just is wondering basis your in much moment? XX if at the could So understand guidance, today at Celebration Key? you have really in it's little us for How yield may

Robin. Thanks, Yes.

is this it's sailings XXXX. guidance. you total X% of what it in only Celebration some of magnitude So in year. Key touches our our give I'll And just

rate we get XX% run XXXX, about that to of a basis, you're much. it's year So full not on and we're talking When kind plus.

not say the So fourth expected when is, bookings we company to good Nonetheless, we the we that it see, at be overall. to in we're it going our more what is which are meaningful to that I'm say but will happy Carnival, see. to for for look quarter the seeing premium

$X year that also you're the getting very potential done that sort $X.XX of maybe If factoring but that ballpark think at could of some upside EPS number annual hope I or your have lower been $X.XX interest this upside? from billion callable debt at, -- you then have next about I'm redone expensive expense savings. be I that not I and in this Is think other kind things And to cost interest of that in guidance, assume in that's right, in of year. Great. debt. what were that some Okay. the

per $X.XX $X.XX, $X.XX because million $X.XX, be would penny. So $XXX it's

in sure do the mind. forecast include that throughout year. we what will were rates I'm some you at interest will of terms We will both to not what just said, saving opportunity address I you're refinancings. additional the did is double-digit in as the of they're of. us. that in say There savings. first not So will referring bit We interest our we're keep to because in that there savings We debt rate a year. bring of be the -- callable market look do that just sure you interest half expect the on to, those thinking

this successful lower is, a or of we'll which number there some say some have interest hopefully, we transactions expense. will year, provide upside should So

Hardiman question from from is Your next coming James Citi.

Obviously, of to a capacity wanted lot maybe a I picture whole So big here. ask not question. added being

And so this so story obviously. growth of much organic, is

brand. I of place self-help, of of obviously, a is, sort versus, think of growth question organic now? the ultimately much know, bunch to listed that whole You the right? I'm this of figure things my that turnaround industry right sustainability I we're trying function how organic by that do don't seeing you're of is out first doing factors taking And in brand you sort guess a so

could the overall to answer scientific about the what James, you I industry wish man, tell your question I versus is us.

competitor more a thing being at same on almost at our mainstream with the said look I XX% set. And got lower you along at about our discount if mix I year. significantly are look top. I what same-ship our fantastic this right ship. for and on We are revenue the want think certainly everybody the when that. next to know don't what But history, us you and rates you don't industry And than sales. year, I growth to yields -- is cruise going look historic they're do But when meant in I we're

good had for we paying what feel it. and we what that good talking is about more versus a what experience and I do what be So us look as not our land getting means very we the trajectory our experience gap got should versus I'm headroom to ratio that our cruise the been skewed we forward exists vis-a-vis competitors a only we've on experiences, of lot land it for people remarkably what just versus accustomed do pretty should but we offers, amount competitors, price changing is to, because more be vis-a-vis call

Disney, and we're on the you to I They as think that say underinvest think in right to down things see a well. cruise. past, we basically have pretty but it's I'm the the double potential going probably when that value about good of we're in that about going sign that

got self-help way. in along a we're think I So company the and of lot good we've

ways, questions 'XX And I up The north you guidance some X.X. different But of first way. and a it. those guess yield of then for lot finished year, quarter with along X%. then in previous I diems guess, the same XX. I'm in occupancy I Got there per although, guidance is a is lines, There's guess, asking some in

through I to Celebration is back should that that our Key, which going as look? we're diems we mix is per just question actually X.X X-plus on maybe Is on out the comes acceleration. anything quarter, I issue? our right? some in Or half you way something the would get with of just So about quantifiable should should lower. the this further from guess, there some work guess help thinking this this of itinerary sort version weigh you we an every to year, be conservatism -- right, geographical perspective,

we've to right? on the can as and with that trying everyone We're not as on be call. been answers giving, be the who's transparent everyone we The call same

will. we [indiscernible], through been haven't We

wave Although of hasn't it's summer been XXXX like years, been stopped feels ride X yet. haven't since a for remarkable we there it but

that what talk we'll see And brings again we'll in so March. And us.

question Truist. from Next coming is Scholes from Patrick

Can hear me? you

Yes.

Great. my question. I'd like to ask about for a bit little Mexico first

of Is a Some Mexico? is port out there this what for a at may that. regarding that your then think Or lately point? news that, for there not -- you first And at your it's my ships, stop any your passenger question. in percentage additional chance do through go folks charges specifically on Josh, itineraries deal? you make done That's a do

bat, the were of President to and historically, have days. lot fly the with weeks. stay it folks Mexico few I been what for informed It's she's misinformed, reason for there's there were and the into not done We've is last when a one a consulted is for no the consulted. is respect through passed. not No deal. think do the opposed this pretty cruise as a But off dealing right this doing. to me. several they no, in was So Mexico not of suggesting. was and in And who with clear one was making transit I she what We people why ramifications

that government dialogue Mexico, the on to to already are it's what July industry. to So proposed to off have bring tax itineraries it to effectively benefits the all good we that. much and take X. tweak We're doesn't not and is pushed been want with with the the We which satisfied erase explain significant,

these changes And year, for definitely engaged nothing nothing have it more so I -- for conversations. hope knows, everybody we feel but forecast in in tax, the have the to We the the just not those And settled. so are we for new year. after

X% assuming far made of our it impact changes would of and year in XXXX, no be did [indiscernible]. itineraries than XXXX, what we as go for As into less place the July the starting it's for

sort percentages to ticket line most rate year-over-year starting you Okay. have on is anything ticket revenue year-over-year rate paid in in lockstep. the moved Certainly, see or growth in follow-up then passenger past than versus out. other. direct fluid increase situation. you or that? book in a the a quarter, growth your more several read question of and transportation to revenues growth commissions a The noticeable higher recent Are This quarters, did passenger in rates commissions, -- those And your the

thought something, Patrick, should talk we very after was XX%, or the revenue. call. it its close X% it I pretty close -- was a --

that Okay. I talk about But a We'll [indiscernible]. the anything [indiscernible]. after about talking was call.

we that and Nothing significant, mean, amount I numbers, a now the -- nothing consider, because from little otherwise. you bit do the but of vary currency quarter-to-quarter as air of know, mix have,

is Next from David question coming Jefferies. Katz from

your right? a The of what better. which into out get Covered little within degree the to I equation, a to you may and on a have cost variability the sense right? built you And follow-up. would guidance? happen a for And the turn I quick have to lot the then side bit for to already. increases cost wanted there, have that

Yes.

time and full we're The we if be the efficiencies. most -- that magnitude find likely to over about is change in those the is the thing to X.X%. the talking of year, So the likely efficiencies

We hard. are constantly working

the on of difficult improve but a out work exact into It we to into hard to those. bit did and quite to our there. out figure is We forecast, guidance and have always lots our timing ideas continue build we very

the X% and I'm what bit in what all category, these get let could. on going some items. And we the to be hard But we if than our Plus, be in absolutely know exceed perfect. it's try of so able because little I trying will to a are built work me this year. know sure that were to expectations and in were, very to every last hard year, timing better something less we to did number mean do inflation pieces we inflation, you we'll off. XXXX, to But best those of

how thing As by what I in I know every and much forecast, direction. only one don't say, just about there's know wrong. I always it's

target? Well up said. wanted we of Is as good Obviously, I When at better things. Xx should I just operated? look the that making today, on thinking to a aspirational side has but leverage progress long-term back historically, where or still follow the company the be achievable? about

for Well, I'm target proud former a right it's the have we Treasurer ourselves now. company. of not

now a in? decision. the need rebuild found Do be to is is Absolutely. How rated right up that's we get investment-grade again, fortress? to no, want on target we to. that of could for Our strong grade? which to which bordering metrics, want Do still investment is situations we That's to up need we argue, be A- for a I A, we X.Xx. don't solid to an ourselves some company

setting returns well I'd about the be investing out So via ourselves, we strength buybacks, for obviously Xx going that balance and in we're in into But be set that remains really the be mix. conversations the shareholder between get balance having closer should to to our what as it dividends we or seen is with that form thinking we're when. say metric, But all nobody board will right to our target goes ourselves. think be what investing sheet the to

today Jamie coming from Morgan -- Katz question from Morningstar. Stanley I'm from is Next sorry

little guess, a bundle too less much away, now? order talk the bundling filling guess to to of I'm with about a optimize rest XXXX is than And are XXXX? not to information one bit I'm I whether that can balancing even about promote or trying way demand from other in pricing? guys how season. wave than is without the better strategy giving pulling there understand hoping First, think you And a competitive forward more maybe you I to, less

thanks. Yes,

little it's question of So hard bit to answer. a a

had activity in for a the quarter in this year selling have past time, record have prepared picked for and actually case. and actively actively We further to some are up just been XXXX XXXX might for booking the remarks. this We XXXX as out you

board, think a our solid pretty solid comes mean are across brands doing to there's management a improvement, the of doesn't the I room which revenue the it actually but when not they're So optimizing for curve, lot pretty job job. shape of and a

quarters. everyone's much different XXXX how wave in respect for positions and to in they're So hitting slightly with booked what

people wave everybody a case-by-case say about period. this they're would I'd cruising -- interested It's in tackling promotions be I everyone. going critical how to in you get say it's decision how during wave. So does

promotions XX% would we ended last remind you, I and in But up wave, did year we yields. with

tactics and -- use that that and So process the the they're part healthy we we they're are through. promotional go tools of

have this strategic I We is with one-and-done a what little Key longer-term question, question bit right? Celebration other suspect the the isn't affiliated costs of then know a are a this I summer. And But project.

So than is be projects it was that there higher should some of in brand-building thinking level be will non-new-build in these CapEx these term the might we be longer in past? like that

That's a fair question.

AIDA we've which Moon midship AIDA I investments and have. the And momentum their neck much pretty is for newbuild making highest the we AIDA the neck non-new returning Cay, been to build think [indiscernible]. Carnival Key, that Half is Celebration with outside to if you continue about our in right brand Carnival in much things of We're that right, portfolio. Evolutions, is think refurbishment the plan. investing

don't what this as far to don't investments the have over clearly, of years, what X I a As run is level that rate support a we or returns next ourselves. But I'd years is these the the you -- on that says we going that they're the you for to basis X we're stick ultimate number demand making should improved that on expect. basis goes,

returning. for this think that is to incredibly you're millions Key millions, Cay. for few high RelaxAway, they're but And ship it's about is process, be talked a It's of $XXX Evolutions, as going going we doing what boost tens we're at through Moon talking that another Half really hundred So any brand for AIDA about. of particular we've about tens a it's million Celebration for that million one

any want know, I add more don't David, you color? to if So

Yes. exactly The only mean, I saw likelihood, say XXXX. thing something I'd in year all be single that In hard bigger over number. make our is, going will number will it's what it's which going that up that release because to decisions you be say for making be was to press the many it there's But what similar every so we'll to forward. time,

Key about side One are in destination thing say a would scope is of what bit and Celebration the Half I Moon Cay, we're and doing. the unique size little

our they're footprint, things to a for the of we'd make been other I out experience . But through amazing, in that talking sure the and or already right not us expansion destinations as don't and about opportunity blue the over months Key do Celebration to money -- we've than time talking will anything I'd other is of I spend The better some some returns. kind generate continued that horizon maybe of you better this flag we for we decade. on of have I'm and about be end in see the a now year. X see

hour. just We'll question. one Yes. approaching take We're the more

thing. Sure

final Montour today coming question Brandt Our Barclays. from is from

the results on Congratulations today.

would you the this less last that booking tougher perhaps the on is just booking take or you you curve, booking pricing your question than to focus way the comps any try Does when know answer. year. bookings first look looked time the it forecasting and this same Josh, time curve But in year, easy don't an the if So -- how versus today robust and I on you're and is versus at last of out highlight? anything else one

we're certainly higher though, year. said, The than are the occupancy this I at it's a prepared at Well, in across all and -- mean, as it I tougher price brands was remarks, X point, quarters. comps last higher basically year that's a

the doing So job optimizing a good and that the I brands momentum of are optimizing curve. continuing think

gave it the out. our we'll as and yields of now, answer we'll there's doesn't the like you but of probably it you to as We way to, see things update. where you'd view update question our shakes that So

Great. and would the housekeeping. And million how a Okay. year. impact in timing quick like just sort 'XX? the you cases up we Sea The of it of a about had much And it show of comps? Red get kind $XXX then the a think do back How should last where in effectively in that of something

probably it we as at analysis it what than all think shook XXXX. end I out, was for less our million $XXX the a little did

people think if we had had it a We huge year-over-year time on thing need for had already back. are year, mind not think about our before reason sold cost you did scramble. it's to thing. is world people that Red to last 'XX to about the And in became already everything cruises, Sea I the them a do, this the spring us we why is million. $XX We keep

through Sea. place, different for attractive February, sell in you weren't Red go This March that year, which can't cruises because sell to of equation necessarily we're we is Red we Sea knowingly in the as meant XXXX, out took a had back to the which

we're with that our over with, it But year a point kind we from deal that of had what kind it's in so see is we've to numbers. year, of means a and now, to 'XX and And it's and different love so dealt be The pain you'd 'XX apples-to-apples the on this versus really year bounce an I that. 'XX don't is normalization and and a is that we move think see we'll versus 'XX back, will basis. whole forward.

Okay.

this offsetting So disruption lower no year? yields

fair. or that's Yes, high more level, in less

Okay.

So we're with think that, time. I over

very I'd good say nothing call, happiness much the Thanks health XXXX. and happy holidays in joining. on for but and wishing So everybody

Thank you. That does conclude today's teleconference.

time, a today. lines and We for participation this at have you disconnect your your may wonderful day. You thank