Carnival Corporation & plc, the world’s largest cruise shipping company, has raised its adjusted EBITDA forecast for the current financial year, but its forecast for costs was also increased.

The company now expects adjusted EBITDA of $4.10 billion to $4.25 billion, above March guidance's range and with a midpoint increase of $175 million, for the financial year to 30 November 2023.

This includes approximately $0.5 billion unfavorable impact from fuel price and currency compared to 2019.

The company forecast continued sequential improvement in each quarter in adjusted EBITDA per ALBD as compared to 2019, driven by maintaining net per diems above 2019 levels while closing the gap in occupancy to 2019 levels, while it also forecast occupancy of 100% or higher.

“Net per diems of 5.5% to 6.5% (in constant currency) two and a half points higher than March guidance, based on the acceleration of its strong demand profile. Adjusted cruise costs excluding fuel per ALBD (in constant currency) one and a half points higher than March guidance, due to a slower expected ramp down in inflationary pressures than previously estimated, incentive compensation increases reflecting expected improvements in the company's current and long-term performance and continued increases in advertising investments,” the company said

For the third quarter of 2023, the company expects:

Adjusted EBITDA of $2.05 billion to $2.15 billion, a significant improvement compared to the second quarter of 2023 and adjusted net income of $0.95 billion to $1.05 billion.

Occupancy of 107% or higher.

“The company expects net yields compared to 2019 (in constant currency) to be positive for the second half of the year, despite the headwinds from the loss of St. Petersburg as a marquee destination due to the suspension of cruises to Russia,” Carnival said.