Carnival Corporation & plc faces risks from global events (geopolitical uncertainty, war, inflation, higher fuel/interest rates), pandemics, ship incidents, legal actions (including class actions and regulatory matters), climate change (evolving regulations, adverse weather), inability to meet targets, data breaches, loss of key personnel, fuel price fluctuations, supply chain disruptions, currency exchange rate volatility, industry overcapacity and competition, and substantial debt. The company's substantial debt, especially in light of the pause in cruise operations, amplifies these risks.
Financial Upside
The company experienced increased passenger ticket and onboard revenue in both the three and nine-month periods, driven by strong demand and higher ticket prices. Capacity increases and improved occupancy rates contributed to this growth. Lower interest expense and reduced debt extinguishment costs also represent financial upside. The company also has significant liquidity, including cash and available borrowings under its revolving facility.
