Middle East War Hit Cruise Bookings, But Carnival Says They’ve ‘Turned a Corner’

Key Points

• Carnival Corporation's cruise bookings and net yield growth were negatively affected by prolonged Middle East conflicts, particularly in Europe.
• Despite record second-quarter revenues and a more than 20% jump in adjusted net income, Carnival trimmed its 2026 forecast and missed some analyst expectations.
• Booking trends began to improve in June following geopolitical developments, and Carnival reported an all-time high in customer deposits for future cruises.

Summary

Carnival Corporation reported record revenues and a significant rise in adjusted net income for the second quarter, but the ongoing Middle East conflict led the company to lower its 2026 net yield growth forecast, particularly due to softer European bookings. Rising fuel costs and airfares, along with reduced international flights, contributed to the challenges. However, CEO Josh Weinstein noted that booking trends improved in June following positive geopolitical developments, and Carnival reached an all-time high in customer deposits, signaling strong future demand despite ongoing uncertainties.