Cruise operator Carnival lifts 2024 profit forecast on record demand

(Reuters) - Carnival Corp raised its annual profit forecast on Wednesday, betting on record demand for cruise vacations as well as higher prices.

U.S.-listed shares of the company, which owns the Cunard and Holland America Line cruise lines, rose 3.2% before the bell. They have risen about 94% in the last 12 months.

Cruise companies are now experiencing an all-time high booking rates as travelers switch to cheaper sea-borne experiences over expensive land-based alternatives such as booking hotels or flights, allowing operators to hike prices.

To attract more bookings, firms also offered special deals and discounts during the all-important wave season - between January and March - on their tickets and itineraries for the year.

In January, Carnival said that the first half of 2024 was almost fully booked, adding that strong demand trends during the year were expected to offset the impact it was seeing due to re-routing of ships in the Red Sea region.

The cruise operator now expects adjusted profit per share of 98 cents in 2024, compared with its prior forecast of 93 cents. Analysts on average were expecting a profit of $1 per share, according to LSEG data.

(Reporting by Granth Vanaik in Bengaluru; Editing by Sriraj Kalluvila)