Carnival Corporation remains optimistic about 2025 bookings after reporting record-breaking financial results for 2024. However, during the Q&A session of its year-end earnings call this morning, company leaders addressed potential hurdles, including Mexico’s proposed passenger tax and commission trends.
Record Full-Year Revenues
The company announced record-high full-year revenues of $25 billion, with net income of $1.9 billion—surpassing its September guidance by over $130 million. Fourth-quarter revenues alone reached $5.9 billion, up 10% year-over-year.
“This has been an incredibly strong finish to a record year. Revenues hit an all-time high, driven by strong demand that we elevated throughout the year, enabling us to outperform our initial 2024 guidance. It delivered nearly $2 billion more to the bottom line year over year,” said CEO Josh Weinstein.
“We have delivered a step-change improvement in 2024, which sets us up for a fantastic 2025 and beyond.” Carnival’s booked position for 2025 is at an all-time high in both price and occupancy levels.
Carnival Targets Higher Yields in 2025
Nearly two-thirds of 2025 is already booked, and Carnival Corporation is projecting a 4.2% increase in net yields compared to 2024’s record figures.
The company expects this growth to counterbalance forecasted rises in operating costs, which include higher dry-dock days, increased advertising rates, and expenses associated with its new private destination, Celebration Key.
Carnival targets an adjusted net income of approximately $2.3 billion, a more than 20% increase from 2024. Weinstein added that the company is working on an “enhanced destination strategy” to fuel demand for cruise vacations.
Mexico Passenger Tax: A Fluid Situation
During the Q&A session, financial analysts inquired about Mexico’s recently proposed passenger tax. CEO Josh Weinstein emphasized that the situation remains unresolved and that the cruise industry was not consulted before the legislation was introduced.
“So right off the bat, no, I do not think it is a done deal,” Weinstein stated. “We’ve been dealing with this with the folks in Mexico for the last few weeks. We were not consulted—no one was consulted—when this was passed.”
Weinstein expressed respect for Mexican leadership but pointed out that the government had not fully considered the ramifications of the tax.
“There’s a reason why cruise is in transit historically, as opposed to people who fly into Mexico and stay there for several days. So it’s already been pushed off to July 1st. We’re not satisfied with that. We want to have good dialogue with the government and explain all the benefits that we bring to Mexico, which are significant.”
Weinstein noted that itineraries could be adjusted to avoid the proposed tax altogether, adding, “It doesn’t take much to tweak itineraries to effectively erase what the proposed tax is on the industry.”
Carnival plans to continue discussions with Mexican officials after the new year but has not factored the tax into its 2025 forecast.
Related: Carnival Brings in $1.7 Billion in Revenue in Q3
