Carnival Corporation Orders Three Additional Ships for Carnival Cruise Line, Introducing a New Class of Ship that will Deliver Even More Fun to the Most Guests at Sea

Rhea-AI Summary

Carnival (NYSE/LSE: CCL; NYSE: CUK) has announced an order for three new LNG-powered ships for its Carnival Cruise Line brand. These ships, set to be delivered in 2029, 2031, and 2033, will introduce a new class of vessel at nearly 230,000 gross registered tonnes. The agreement with Fincantieri includes design, engineering, and construction of these ships, which will be the largest in Carnival 's global fleet.

This order brings Carnival Cruise Line's total new ship orders for 2024 to five. The company is focusing on strategic growth, with an average capacity increase of 1.5% per year between 2025 and 2033. The new ships will carry almost 8,000 guests at full capacity, featuring advanced energy efficiency and emission reduction technologies.

Positive

• Order for three new LNG-powered ships, expanding fleet capacity
• New ships will be the largest in Carnival 's global fleet
• Strategic growth with 1.5% average capacity increase per year (2025-2033)
• Increased focus on Carnival Cruise Line, the highest-returning brand
• Advanced energy efficiency and emission reduction technologies in new ships

Negative

• Significant capital investment required for new ship orders
• Potential increase in debt to finance new ship construction

World's largest cruise company finalizes agreement with Fincantieri for three new landmark cruise ships scheduled for delivery in 2029, 2031 and 2033

New ships to take Carnival Corporation's LNG-powered fleet to 16 ships

MIAMI, July 23, 2024 /PRNewswire/ -- With consumer demand for cruise vacations at historic levels, Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK), the world's largest cruise company, today announced an order for three new ships for its namesake Carnival Cruise Line brand for a new class of vessel, at nearly 230,000 gross registered tonnes. The agreement with Italian shipbuilder Fincantieri provides for the design, engineering, and construction of these liquefied natural gas (LNG)-powered ships, which will be delivered in the summers of 2029, 2031 and 2033, respectively.

"We are proud to be known as America's cruise line with tremendous guest loyalty and an outstanding team that has enabled us to deliver memorable vacations to over 100 million guests," said Christine Duffy, president of Carnival Cruise Line. "For this next generation ship, we are focused on creating innovative guest experiences that will take Carnival Cruise Line into the future with new FUN features and excitement that we know our guests will LOVE."

With today's order, there have been five new ship orders for Carnival Cruise Line announced in 2024. Earlier this year, Carnival Corporation placed its first newbuild orders in five years for two more Excel-class ships that will join the Carnival Cruise Line fleet in 2027 and 2028. The company also recently announced a series of strategic shifts to further optimize the composition of its global brand portfolio and to increase guest capacity for Carnival Cruise Line, transferring a total of five vessels from sister brands to the Carnival Cruise Line fleet between 2023 and March 2025.

"We are doubling down on the growth of Carnival Cruise Line – our highest-returning brand – to keep up with the incredibly strong demand we continue to see for the world's most popular cruise line," said Josh Weinstein, chief executive officer of Carnival Corporation & plc. "At this point, our newbuild pipeline is just one delivery in each of 2025, 2027, 2028, 2029, 2031 and 2033. We continue to take a disciplined approach to growth, strategically directing new capacity to the areas of highest demand at a rate of one to two new ships per year."

According to Weinstein, this order will take the company's overall measured capacity growth between 2025 and 2033 to an average of approximately 1.5% per year. "This gives us the headroom to strategically provide new capacity to the brands in our portfolio like Carnival Cruise Line, which provide outsized returns while continuing to execute against our responsible capital strategy, using our strong free cash flow over the next several years to improve our balance sheet, significantly reduce our debt, and continue to transfer value from debt holders to shareholders," he said.

With over 3,000 guest staterooms, the new ships will be the largest in the Carnival Corporation global fleet and will be able to deliver fun to more guests than any ship in the world when carrying almost 8,000 guests at full capacity. Once delivered in 2033, Carnival Corporation will have a total of 16 LNG-powered ships – including eight Carnival Cruise Line ships – making up almost 30% of Carnival Corporation's global capacity and delivering immediate greenhouse gas emission reductions. The new ships will also feature advanced energy efficiency, waste management, and emission reduction technologies to further reduce the company's environmental footprint.

"We are excited to join forces with Carnival Cruise Line to debut a new class of ship, which will be the largest cruise ship ever constructed by Fincantieri and the largest ship ever built in Italy. We are proud of the role Fincantieri has played in helping Carnival Corporation secure its position as the world's largest cruise company and look forward to continuing this success story together," said Pierroberto Folgiero, CEO, Fincantieri.

Design details and itinerary information for the new Carnival Cruise Line ships will be announced in the future.

This order is contingent upon financing, which is expected to be completed later this year.

About Carnival Corporation & plc
Carnival Corporation & plc is the largest global cruise company, and among the largest leisure travel companies, with a portfolio of world-class cruise lines – AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises (Australia), P&O Cruises (UK), Princess Cruises, and Seabourn.

Additional information can be found on www.carnivalcorp.com, www.aida.de, www.carnival.com, www.costacruise.com, www.cunard.com, www.hollandamerica.com, www.pocruises.com.au, www.pocruises.com, www.princess.com, and www.seabourn.com.

For information on Carnival Corporation's industry-leading sustainability initiatives, visit www.carnivalsustainability.com.

 

 

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SOURCE Carnival Corporation & plc

FAQ

When will Carnival Cruise Line receive its new class of ships?

Carnival Cruise Line will receive its new class of ships in the summers of 2029, 2031, and 2033.

How many guests can the new Carnival Cruise Line ships accommodate?

The new ships will be able to carry almost 8,000 guests at full capacity, making them the largest in Carnival 's global fleet.

What is the size of the new Carnival Cruise Line ships (CCL)?

The new Carnival Cruise Line ships will be nearly 230,000 gross registered tonnes, making them the largest in Carnival 's fleet.

How many LNG-powered ships will Carnival have by 2033?

By 2033, Carnival will have a total of 16 LNG-powered ships, including eight for Carnival Cruise Line.