The London Stock Exchange and the New York Stock Exchange list shares of Carnival Corporation and Carnival Plc, the parent companies of Carnival Cruise Lines. Through agreements between the two legal companies, the dual-listed firm operates as if it were a single economic organization.

The company's flagship brand, Carnival Cruise Line, sails to the Bahamas, the Caribbean, and Mexico all year round and to Bermuda, the United States, Canada, Europe, and Australia during specific times of the year.

How the Cruise Industry Makes Its Money

The Coral Princess caught my eye lately, and I couldn't help but ask, "How much does a cruise ship cost?" At a minimum, I'm guessing it's a billion dollars. As it turned out, the ship's price was rather fair.

When Princess Cruises acquired it in 2002, it only cost $330 million. If I ask how much money these cruise ships make, I end up with a whole other set of inquiries. How long do you expect them to last? In what areas do they see the greatest financial success?

Average Spending of Carnival Goers

Anyone purchasing a cruise knows that the advertised rates begin with the total cost. While cruise lines may list prices for a single passenger in an inside stateroom, such prices are often based on two passengers.

Additionally, most passengers want to pay more to have a more luxurious cabin. Also, once you're aboard the ship, there are many ways to spend money. Once on board, spending hundreds, if not thousands, of dollars on things like cocktails, souvenirs, and the casino is easy.

Money Matters for the Carnival

Results for Carnival's fiscal year (FY) 2021, which concluded on November 30, 2021, were released in December 2021. The $1.9 billion Carnival makes yearly is less than a tenth of what it was in FY 2019 before the virus hit. The 2019 fiscal year's net profit was $3 billion.

In March 2020, Carnival suspended its passenger cruise operations because of the pandemic. Eight of the business's nine brands, or around 67% of total capacity, have reopened for passenger cruise operations, the company said on January 13, 2022. The company also noted that the extent to which COVID-19 has affected its operations is unclear but that it anticipates the pandemic to continue having a materially negative impact on its financial performance.

However, once guest operations are gradually restarted, Carnival does anticipate having its whole fleet operational by the summer season. A $3.9 billion operational deficit was recorded for FY 2021, down from a $5.8 billion loss the previous year. Annual sales dropped by 69.5% to $1.1 billion, or around 58% of total sales for the business.

Transportation For Cruises In Europe And Asia

The other four Carnival cruise lines fall under the EA cruise operations division. Costa Cruises, with a capacity of 36,520 passengers across 11 ships as of November 30, 2021; AIDA Cruises, with a capacity of 30,770 passengers across 13 ships; P&O Cruises, with a capacity of 19,020 passengers across six ships; and Cunard, with a capacity of 6,830 passengers across three ships.

The operational deficit for the EA division was $2.6 billion in FY 2021, down from $2.7 billion in FY 2020. The annual income dropped by 60.2% to $712 million, or more than 37% of Carnival's total.

Service for Cruises

Carnival's portfolio of port locations and other services that aid the company's cruise brands constitute the cruise support sector. In FY 2021, the segment's operating loss was $477 million, which increased from the prior year's operating loss of $313 million. Annual sales dropped by 38.2 percent to $42 million, or around 2 percent of overall earnings.

Various Tours

Holland America Princess Alaska Tours, a subsidiary of Carnival that operates in Alaska and the Canadian Northwest Territories, makes up the tour and another component. Hotels, lodges, glass-domed railcars, and buses are all under the wing of the tour firm. The service is a nice addition to the company's cruises in Alaska.

The tour and other segments' operating loss increased to $67 million in FY 2021 from $29 million the previous year. Income dropped by 58.2% year-on-year (YOY) to $46 million, or more than 2% of total income for the year.

Recent Changes to the Carnival

Carnival's flagship brand, Carnival Cruise Line, commenced sailings from Charleston, South Carolina, on the Carnival Sunshine on January 13, 2022. By March 2022, Carnival Cruise Line hopes to have its vessels back in service. On December 23, 2021, Carnival reported that the Zuiderdam, a ship operated by Holland America Line, had resumed sailing from the Port of San Diego in California. This was the second ship to return to San Diego for Holland America Line since the industry-wide delay began.