Cruise operator Carnival Corp narrowed its annual loss forecast after managing to strike a profit during the third quarter of 2023. It’s shares remained around 5% lower, however, amid concerns about rising fuel costs.
The company’s profit for Q3 stood at $1.07 billion, or 79 cents per share, vastly outperforming its loss of $770 million, or 65 cents per share during the same quarter in 2022. Still, higher fuel costs have led the cruise ship company to forecast a wider-than-expected loss of $130 million during the fourth quarter. Still, this financial hit is expected to be a temporary one, with the cruise industry looking strong from a long-term perspective.
“Fear around inflation, shrinking consumer savings, student loan repayments, and other spending issues have bogged down shares recently, but should prove to be transient,” Morningstar research analyst Jaime Katz observed. “All signals indicate cruising is resonating with consumers.”