Carnival Corporation has announced adjusted net income of $301 million, or $0.39 diluted earnings per share, for the first quarter of 2016 compared to adjusted net income for the first quarter of 2015 of $159 million, or $0.20 diluted earnings per share.

For the first quarter of 2016, U.S. GAAP net income was $142 million, or $0.18 diluted earnings per share, which included unrealized losses on fuel derivatives and other net charges of $159 million.

For the first quarter of 2015, U.S. GAAP net income was $49 million, or $0.06 diluted earnings per share. Revenues for the first quarter of 2016 were $3.7 billion compared to $3.5 billion in the prior year.

Carnival Corporation & plc President and Chief Executive Officer Arnold Donald noted: “Our teams delivered another strong quarter of operational improvement by creating increased demand for our brands and leveraging our scale which resulted in revenue yield improvement approaching 6 percent and the near doubling of first quarter adjusted earnings. We thank our millions of loyal guests and valued travel professional partners around the globe for their patronage and support.”

Key metrics for the first quarter 2016 compared to first quarter 2015 were as follows:

• Net revenue yields (net revenue per available lower berth day or “ALBD”) increased 5.7 percent in constant currency, which was better than the company’s December guidance of up 3.5 to 4.5 percent. Gross revenue yields decreased 0.4 percent in current dollars due to changes in currency exchange rates.
• Net cruise costs excluding fuel per ALBD increased 1.6 percent in constant currency and were lower than December guidance, up 2.5 to 3.5 percent, due to the timing of expenses between quarters. Gross cruise costs including fuel per ALBD in current dollars decreased 6.0 percent due to changes in fuel prices and currency exchange rates.
• Changes in fuel prices (including fuel derivatives), net of changes in currency exchange rates, increased earnings by $0.03 per share.

2016 Outlook

At this time, cumulative advance bookings for the remainder of 2016 are well ahead of the prior year at slightly higher prices, said Carnival.

Since January, booking volumes for the remainder of the year are running ahead of last year’s historically high levels at higher prices.

Donald noted, “Our ongoing guest experience innovations coupled with our increasingly effective marketing and communication efforts have driven additional demand for our brands, resulting in a strong booked position. The lower levels of inventory remaining for sale for the balance of the year, particularly for our peak summer period, positions our brands well for continued revenue yield growth and builds confidence in our full year earnings forecast.”

“Additionally, the underlying strength of our operating performance, leading to sustained earnings and cash flow growth, has accelerated the return of capital to shareholders through our stepped up share repurchase program. Since resuming the share repurchase program, we have bought back approximately 27 million shares returning $1.3 billion to shareholders in the last six months,” Donald added.

On a constant currency basis, compared to the prior year, the company continues to expect full year 2016 net revenue yields to increase approximately 3 percent and net cruise costs excluding fuel per ALBD for full year 2016 to be up approximately 2 percent.

Based on current booking strength, the company forecasts full year 2016 adjusted earnings per share to be in the range of $3.20 to $3.40, compared to December guidance of $3.10 to $3.40 and 2015 adjusted earnings of $2.70 per share.

Second Quarter 2016 Outlook

Second quarter constant currency net revenue yields are expected to increase 1.5 to 2.5 percent compared to the prior year. Net cruise costs excluding fuel per ALBD for the second quarter are expected to be up 0.5 to 1.5 percent on a constant currency basis compared to the prior year.

Based on the above factors, the company expects adjusted earnings for the second quarter 2016 to be in the range of $0.34 to $0.38 per share compared to 2015 adjusted earnings of $0.25 per share.