NEW YORK (Reuters) – Carnival Corp is expected to report a smaller quarterly loss and a spike in revenue when it announces second-quarter results on Friday, but bargain-basement prices for some cruises may squeeze the cruise operator’s margins.
Analysts expect the Miami-based company to report a loss of $1.17 a share compared with a loss of $1.80 per share a year earlier. Revenue is seen at $2.77 billion, from $50 million when cruises were grounded in the pandemic, according to data from Refinitiv.
“Your typical Carnival, Royal Caribbean or Norwegian Cruise this summer to the Caribbean is about as cheap as we’ve ever seen it,” said Truist Securities lodging and experiential leisure analyst Patrick Scholes.
Cruises are more likely to discount rooms closer to departure dates in part due to COVID-19 testing protocols as well as the fact that 13% more ships are at sea than pre-pandemic, he said.
Analysts forecast the company’s gross profit margin around 11% for the quarter, a figure…