Carnival warned that its 2024 revenue could take a hit of up to $10 million after the collapse of the Baltimore Bridge shut down the cruise line’s access to Maryland ports.
Carnival Chief Executive Josh Weinstein told investors during the company’s first-quarter earnings call on Wednesday that the company’s ships will be temporarily docked in Norfolk, Virginia, and that “we will minimize operational changes.” It will be helpful.” wall street journal Previously reported.
The Carnival Legend set sail on Sunday for a seven-day Bahamas cruise. Two days earlier, around 1:30 a.m. ET on Tuesday, the Francis Scott Key Bridge collapsed after being struck by a container ship, an event that was immediately announced as causing mass casualties.
Instead of returning to Baltimore this weekend, Carnival Legend will end its trip in Norfolk, and “guests will be provided with complimentary bus service back to Baltimore,” the company announced. press release.
The next seven-day voyage, scheduled for March 31, will also depart from Carnival’s Port of Virginia.
“Guests on current and future cruises have been informed of this change,” Carnival said in a statement.
Carnival slightly raised its 2024 adjusted profit outlook to $5.63 billion, despite expecting an eight-digit disruption to its annual adjusted profit as a result of the diversion. The amount of $10 million has not yet been factored in.
Carnival had previously expected adjusted earnings before interest, taxes, depreciation and amortization to be about $5.6 billion, while analysts expected it to be $5.64 billion.
A news release issued by Maryland Governor Wes Moore last month hailed the Port of Baltimore as “the best port in the nation” and one of Maryland’s largest economic generators.
More than 444,000 people will sail from the port in 2023, creating approximately 15,300 direct jobs and nearly 140,000 roles related to port activities, Moore said.
Cruise business is on the rise post-pandemic.
In the past year alone, Carnival’s stock price has increased more than 95%.
The Miami-based cruise company reported Wednesday that first-quarter 2024 revenue rose 22% to a record $5.4 billion.
Weinstein told the Journal that the company has been successful in raising prices for customers without hurting demand.
He added that customers are making more advance reservations this year than in previous years, giving Carnival increased confidence that it will be able to utilize the full capacity of its ships this summer without last-minute discounts.
Representatives for Carnival did not immediately respond to The Post’s request for comment.
Royal Caribbean, which is scheduled to return from the Caribbean to Baltimore on April 4 with its own itinerary, is nearing an end to pandemic losses, with cruises booked as of March 2024, according to the Journal. The company boasts that its previous revenue was 40% higher than the same period. Period of 2023.
However, the cruise line has not yet commented on how the Key Bridge collapse may affect its momentum.
Royal Caribbean only said it was “closely monitoring the situation” ahead of Vision of the Seas’ April 4 return to Baltimore from a 12-night Caribbean voyage.
“Our port logistics team is currently working on ongoing and future sailing alternatives for Vision of the Seas,” Royal Caribbean added. Royal Caribbean is planning another voyage, set to sail from Baltimore on April 12.
