Good morning, and welcome to our business update conference call.
I am Arnold Donald, President and CEO of Carnival Corporation & plc.
I'm joined today telephonically by our Chairman, Micky Arison, who is in Europe.
And here with me in Miami.
David Bernstein, our Chief Financial Officer; Beth Roberts, Senior Vice President, Investor Relations; and as part of our previously announced transition, our Chief Operations Officer, Josh Weinstein.
joining morning. for all you us this Thank
in Now our be remarks begin, please cautionary forward-looking. some of note that statement the on to I refer before press must release. I Therefore, you today's this call will
update final CEO. This business is as my
our have unfortunately I over accomplished we very how overcome am X current years. I especially like at reflects the market proud insurmountable well has disappointingly, few times While very the proud team the what seemed these conditions, am of nonetheless years. collectively of share price all that obstacles last last
And about, team confident a I success. have from reached about trajectory. enjoying its we positive to and fact, future. future we operations am point in inflection With looking corner and, and in this excited I'm continuous not a company, remain cash transition. I very very in the excited and an I'm turned positive, believe on now also our headed of turning forward the smooth our are I strongly only are
values than cannot phase characterize with strategy company's aligned of that anyone position him our With part my proven strong the Chairman, well throughout they one of operations suited his on company leadership in key and the strong results current through for And build driven He work of business the away, business is team next support better number his during and is tuning tenure. those company, vision, thorough Josh. role Vice intensity As to journey. to lead our pandemic. responsibility this will played as Josh momentum. global puts served in the executive. in our Josh the I and integral He core his to far a our be of management think truly company. an Josh's and respected roles. our He's understanding industry, he a
It demand is the results. continued business our to reinforcing strength see and cruise. for turning Now to
over yet We the the improving thoughtfully, occupancy are fleet now are aggressively, sailing ramping on same to with pricing have service. higher are on at pre-COVID compared that to in time, levels. we we focused and driving full XX% of operations, ships those been up And
we capacity ships the As to the indicated, quarter, for said, increased intentionally we restarted from has XX by XX% over constrained. had been XX% last while XX%. that increased this occupancy available quarter also last quarter, occupancy That
an combination passengers improvement over Now sequential the in carried. XX% drove
fact, XX% month quarter. In are guests of again, the already X.X higher on capacity. we we And past carried over partly this June, in approaching million occupancy and, even
in makes that those impressive even and were in what other that society travel even than that of were able sector. in given far frequently restrictive that of those were to more portions an leisure we restrictive changing is more far protocols, Now environment those including the more achieve and than uncertainty, broader found
of test progress. the make thankfully, virus, potential improvement constraints in a number to very guests relax Yet, the of requirements are nonetheless, the have we pool to to to and been able starting in vaccination state in the given meaningful While requirements due we ongoing continue, face places. of
to into North some of the As American removes friction for clearly Europe you which, the CDC requirements air our both the lifted in know, brands testing travel forward, deployment recently reentry for going the U.S. real from are XXXX a Canadian longer requiring with due Alaska. expect and embarkation beyond. associated be times. Consequently, the itineraries flight, benefit we Usually longer in realized and these to lead duration typically
topping quarter, increased in deposits billion customer $X by $X.X Importantly, second the billion.
becomes and see increasingly as protocols and build a virus. in are relaxed express continued that we demand increase society demand, the further seen to expect Now continue as to we comfortable managing have
threat the not to global our be again. and of while has recession-proof, recession-resilient business recession, time proven Concerning
remains have prior people true things. in And even even vacations. prioritize Cruise take because is today's more in value compelling environment downturns spending experiences globally that's of appealing its As powerful downturns, seen spending alternatives. Also, tailwind. is for to relative employed land-based in demand on vacation option on pent-up especially an cycles, a which over we during there travel proposition where people
success perceive occupancy achieving Currently, many XXX%, far for with guests less international we sailings are with friction where or above embarkations. seeing close-to-home at than cruises,
Line Cruise occupancy our expected is Carnival reach our fleet, fact, entire third to during nearly its brand, XXX% In quarter. sailing
to efforts second begun cruisers. We also quarter, to saw ramp advertising an support improvement guests we our help first-time the and selectively in have up new-to-cruise in attracting
pricing. improving remain on through focused price year. We Concerning next
long-term on of to capitalize focused on while preserving environment channels [ we and are have this unavailability, ] travel pricing. we promotions health and optimizing the demand. protocols use current occupancy coast In limited OPay where restrictions We near-term
We on efforts. aggressive optimization are building our fleet
stronger have is there capacity on capitalize we reallocated in markets challenges of Given to Europe, demand. parts where
beginning Venezia, both Cruise 'XX and introduced Cruise we in approach launch respectively. the newly fact, Costa In that to the the With by Costa Carnival we Carnival think Costa Carnival. and holds by both Carnival, promise-, Line, catering Carnival's Line an managed great ambience to announced be creative we Costa bring beauty and guest XXXX, just spring Firenze, spectacular, by guests. Italy will especially of base of of
This for a be Deployment capitalizing itinerary will a new will elements. and offer for new design guests represent experience while Carnival style to choose fun, beautiful guests. shortly Carnival announced Costa's Venezia unique option for will Italian concept on Italian
in Carnival guests. Costa Australian of announced Separately, Luminosa we to the also beginning the catering to November XXXX brand transfer
the been guests invested us and offerings These contribute from Carnival changes, Carnival have manage strengthen among portfolio. brand. to growth replenish and capacity brand will return recent that with differentiated capital for removed ship across to these demand product Cruise new on and the exits Line on capitalize our Now enable
revenues of XX a ship, removal an the of point opportunities ships premium a well platform excluding costs, since XXXX. smaller, over deliver be X have moderating these XXXX ships, more line. fleet effects bottom In delivery and balcony The accelerated to efficient and since through the revenue efficient less efficient less larger, reduction removed priced even announced and the from X to to mix inflation for addition, cabins us onboard level percentage continue the higher delivered generating the more ships better further to revenue enabling a of fleet coupled the removal unit increase of fosters total as an as optimize ship we time to additional our with in in bringing X% fuel, of
our operations, ships, delivered will return expediting our capital. consist of and of return improving capacity invested to full Upon returning to newly our nearly profitability X/X on
our our Moreover, highest is capacity to in brands returns. concentrated XXXX next year, with growth compared
Concerning to manage achieve reduction a fuel consumption further fuel recent and unit will as aggressively XX% reaching fuel we continue Upon fleet full reduction our we intensity that in XXXX. consumption. in operations, to carbon X% anticipate prices, we compared
proactive our we to despite carbon increase our and fuel reduce peaked XXXX. XXXX, expected that's footprint consumption, actually an With through in efforts XX% in capacity over
efforts, intensity in energy-efficient reaffirmed on achieve goals through XXXX our fleet to that and investing investing designing In optimization in accelerated itineraries and efficiency, an carbon strengthened for energy and them projects drive path and fact, port are our we destination have reduction projects.
to Grand broke destination exciting destination Bahamian project, XXXX and in expected guests on many offer Bahama Cruise a uniquely with new Cruise an Line During the ground experience and This amenities. port. is Carnival Carnival late open will quarter, features exciting
Cove Moon Amber Grand and Cozumel, private Cay, strong Princess Turk, Mahogany our guest experience Bay, the Half this Now Cay, destination foothold in will join securing Caribbean.
X or terminals of In a operated in Cruz owned and facilities, fact, we and Barcelona. from port private de destinations total benefit Tenerife Santa including
in we right operations point direction reached turning with cash an this Again, heading have I the believe are we positive operationally quarter. inflection and from
of a through have and billion debt strong XXXX. our maturity down We managed liquidity position have already $X.X towers
operating We levels, and have fleet now future cash improving of occupancy XX% well for at generation. bodes which the
while uncertainty to become continue continues see as restrictive a managing perceive Carnival less already as and have Cruise cruises. for build, become demand strength comfortable the be And Lines virus, to continues with date, to to protocols and the headwind expect society we seen friction more increasingly to closer-to-home we travelers
alternatives, pricing and continued a help in proposition is the environment strength onboard should relative value land-based and foster should today, going which for forward. to our help attractive The even good greater revenues momentum to accelerate
around I the don't have Arison, Board and Directors. rewarding adequately the includes again, words ingenuity creative has execution of shoreside course, our world And convey of Once Micky been. dedication, phenomenal rest the how of personally team, our of the the and Chairman, and to the shipboard the commitment, our Carnival that, and inspiring
successfully while thousands positioning and truly highest continuous of and our shareholders' our the In the work tens in uncertainty, compliance, honoring health, them with and priority the assets simply success of a great barriers well-being enough of environmental after environment commitment challenge protection safety them. constantly of everyone face our stewarding and us thank constraints, challenge, global of privilege of changing extreme after challenge team and and an time. honor tackled it's to can't over I an for and to
letters throughout cruise. home X destination to more Thank communities have the to our ever vaccines our deliver than world-leading by also of travel you and other us lobbying to and who appreciated. deeply are loyalty of countless story challenges, these protocols. support you workable our among agent guests. helping and critical for our and stood providing the Thank Thank contributions so partners, Their brands and are great you port who our to valued to calls
and the to to own. agencies meet course, us suppliers our for thank banks, and ongoing us while of and shareholders, continued support. export bondholders, you our our of Thank many to hard challenges stakeholders stood you our credit worked the And for who by needs other in their confidence facing
indeed many. future so efforts of poised great of for We and are because the contributions a
the the the would introduce Josh words like give turning call chance few say With I to Josh? that, a and to before to him opportunity David. take back to
