Carnival Corporation reported its highest third-quarter earnings in company history, pulling in $1.85 billion in third-quarter profit as the cruise giant continues raising prices. At the same time, consumers continue to book at record levels.
The standout story for cruisers is Celebration Key, Carnival’s new $600 million private destination in the Bahamas that opened in July.
In just two months, nearly 500,000 guests have visited the island, featuring the Caribbean’s largest freshwater lagoon, the world’s largest swim-up bar, and towering water slides.
CEO Josh Weinstein said Celebration Key is “meeting expectations” in terms of its financial returns, with the destination already commanding premium pricing on its itineraries.
The company expects 2.8 million guests to visit next year across 20 Carnival ships, with a vessel docking virtually every day and multiple ships 85 percent of the time.
The new destination is driving bookings well into the future. Carnival reported “unprecedented” advance reservations for 2027 sailings, with more bookings made this summer than in any comparable period in the company’s history.
Nearly half of 2026 has already sold at prices higher than those of last year.
Those higher prices are translating directly to the bottom line. Ticket prices generated an additional $215 million in revenue during the summer quarter alone, with the company citing “continued strength in demand” as consumers paid more without hesitation.
Both North America and European cruise brands reached “historical record high levels in pricing,” according to Weinstein.
Passengers are also spending more once onboard. Specialty dining, drinks, shore excursions, and other extras added $90 million in the quarter, pushing total onboard revenue to $2.72 billion.
The financial strength comes despite Carnival operating 2.5 percent less capacity after retiring two older ships.
The company has minimal expansion planned, with just 0.8 percent capacity growth in 2026 and no new ships scheduled for delivery that year.
It is worth noting that a limited supply against surging demand suggests continued price increases ahead.
Carnival’s improving finances mean the company is approaching the point where it can restart dividend payments to shareholders, which were suspended during the pandemic.
The cruise line’s net debt dropped to 3.6 times earnings, nearing investment-grade credit rating levels.
For cruise passengers, the message is clear: cruise prices are rising and show no signs of slowing, especially on itineraries featuring Celebration Key and other private destinations that are proving wildly popular with guests.
