Available Lower Berth Days (ALBDs) increased by 6.2% for the three months ended August 31, 2024, driven by new ship deliveries. This capacity expansion allows Carnival to accommodate more passengers and generate higher revenues.

In June 2024, Carnival announced the sunsetting of the P&O Cruises (Australia) brand and folding its operations into Carnival Cruise Line by March 2025. This strategic move is not expected to have a material impact on the consolidated financial statements.

Carnival entered into an agreement to sell one NAA segment ship during the three months ended August 31, 2024, while continuing to operate it under a bareboat charter agreement through February 2025. This strategy allows Carnival to reduce its fleet size while still generating revenue from the ship.

While operating expenses increased due to capacity growth, the increase was less than the revenue growth, indicating effective cost management. This contributed to the significant improvement in operating income.

Interest expense decreased by 17% to $431 million for the three months ended August 31, 2024, due to a decrease in total debt and lower average interest rates. This indicates successful debt management strategies.

Carnival reported compliance with the applicable covenants under their debt agreements as of August 31, 2024. This demonstrates effective financial management and adherence to contractual obligations.

The company acknowledges that the volatility in the price of fuel and foreign currency exchange rates are reasonably likely to impact their profitability. This highlights ongoing market risks that could affect financial performance.

Carnival anticipates a potential impact from a global minimum tax in 2026, with an estimated annual impact of approximately $200 million before mitigating actions. This represents a significant potential financial risk.

Carnival believes that the increasing global focus on climate change and new regulatory requirements are reasonably likely to have a material negative impact on their future financial results. The impact in 2024 is expected to be approximately $50 million due to the EU ETS.

Occupancy percentage reached 112% for the three months ended August 31, 2024, compared to 109% in 2023. This indicates a strong recovery in demand and suggests a competitive advantage in attracting passengers.

Revenue growth of 15% exceeds the capacity growth of 6.2%, indicating improved pricing power and effective revenue management strategies. This suggests a strong competitive position in the market.

The NAA (North America and Australia) segment shows a significant increase in operating income, indicating a strong competitive position in this key market. This segment's performance is a major driver of overall company growth.

Fuel consumption in metric tons per thousand ALBDs remained relatively stable, indicating consistent fuel efficiency despite capacity growth. This demonstrates effective operational management.

The company manages fuel consumption through fleet optimization, energy efficiency, itinerary efficiency, and new technologies and alternative fuels. This proactive approach helps control fuel costs and improve operational efficiency.

The company manages exposure to fluctuations in foreign currency exchange rates through normal operating and financing activities, including netting certain exposures and using derivative and non-derivative financial instruments. This helps mitigate financial risks and improve operational efficiency.

The company manages fuel consumption through fleet optimization, energy efficiency, itinerary efficiency and new technologies and alternative fuels. This indicates a focus on innovation and technology to improve operational efficiency and reduce costs.

Selling and administrative expenses increased due to increased investment in advertising and higher information technology expense. This suggests a commitment to innovation and digital transformation.

The company acknowledges that they have been, and may continue to be, impacted by breaches in data security and lapses in data privacy. This highlights the need for ongoing investment in cybersecurity and data protection technologies.

The company made prepayments for several debt instruments and engaged in refinancing activities, resulting in a decrease in interest expense. This demonstrates effective capital allocation and debt management.

The company utilizes export credit facilities to fund ship deliveries, indicating a strategic approach to capital allocation for growth initiatives. These facilities provide a significant source of funding for newbuilds.

The Stock Swap Program allows the company to realize a net cash benefit when Carnival Corporation common stock is trading at a premium to the price of Carnival plc ordinary shares. This program demonstrates a strategic approach to capital allocation and value creation.

The company acknowledges the importance of sustainability matters and the need to meet targets, goals, and aspirations. This indicates a commitment to ESG principles.

The company acknowledges the increasing global focus on climate change and the reduction of greenhouse gas emissions. They became subject to the EU ETS on January 1, 2024, indicating a proactive approach to environmental regulations.

The company is aware of the factors associated with climate change, including evolving regulations, increasing global concern, and stakeholder scrutiny. This demonstrates an understanding of the importance of addressing climate change and its potential impact on the business.

The company acknowledges that events and conditions around the world, including geopolitical uncertainty, war, inflation, and higher interest rates, may lead to a decline in demand for cruises. This highlights the sensitivity of the business to macroeconomic factors.

The company is aware of the increasing global focus on climate change and the reduction of greenhouse gas emissions. This highlights the need to adapt to changing environmental regulations and consumer preferences.

The company acknowledges that overcapacity and competition in the cruise and land-based vacation industry may negatively impact cruise sales, pricing, and destination options. This highlights the need to differentiate and maintain a competitive edge.