Carnival Corp recently released its latest 10-Q, showing a cruise operator with four reporting segments: North America Cruise Operations, Europe Cruise Operations, Cruise Support, and Tour and Other. The company sells leisure travel under brands including AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises, and Seabourn. It also operates port destinations and islands, along with hotels, lodges, glass-domed railcars and motorcoaches, and is headquartered in Miami.
In Item 2, Management’s Discussion and Analysis, Carnival said passenger ticket revenue rose 4.1% to $4.3 billion in the three months ended May 31, 2026, from $4.1 billion a year earlier. The increase reflected a 2.0% rise in available lower berth days, higher ticket prices, and a favorable foreign-currency translation impact, partly offset by lower air transportation revenue. Onboard and other revenue increased 7.4% to $2.4 billion, driven by higher onboard spending and the larger capacity base.
For the quarter, consolidated operating expenses climbed 8.7% to $4.2 billion from $3.9 billion. Carnival pointed to $121 million of higher fuel prices, $103 million from the absence of ship-sale gains recorded in 2025, $82 million tied to the capacity increase, $44 million of unfavorable foreign-currency translation, and $30 million of higher payroll and related expenses linked to crew travel costs from the Middle East conflict. Those increases were partly offset by $42 million of lower repair and maintenance costs and $23 million of lower fuel consumption per ALBD.
Operating income fell to $851 million from $934 million, a decline of $83 million. North America operating income decreased to $658 million from $691 million, while Europe operating income slipped to $326 million from $368 million. Selling and administrative expense rose 5.8% to $863 million, and depreciation and amortization increased 4.4% to $723 million.
Interest expense, net of capitalized interest, declined 16% to $285 million from $341 million, reflecting lower total debt and lower average interest rates. Carnival also said its passenger ticket revenues are seasonal, with the third quarter typically generating the largest share of operating income because of higher demand, pricing and occupancy during the Northern Hemisphere summer.
The company said it became subject to the EU Emissions Trading System on Jan. 1, 2024, and that the impact in 2025 was $91 million, representing costs associated with 70% of emissions under the ETS operational scope. It said all in-scope emissions will be impacted in 2026.
Operational statistics showed passenger cruise days of 25.7 million in the quarter, up from 25.3 million a year earlier, and available lower berth days of 24.7 million, up from 24.2 million. Occupancy held at 104%, passengers carried were unchanged at 3.4 million, and fuel cost per metric ton consumed rose to $793 from $614. Following these announcements, the company's shares moved 0.42%, and are now trading at a price of $28.58. If you want to know more, read the company's complete 10-Q report here.
