Carnival Corp. (NYSE:CCL), the cruise operator, posted a narrower-than-expected quarterly loss and beat revenue estimates as demand for cruises remained steady, allowing the company to increase ticket prices. The company’s shares, which have more than doubled this year, rose 7% after Carnival also projected that its first-quarter core earnings would more than double from a year earlier.

Despite the increase in ticket prices, cruises are perceived as a more affordable option than many overseas vacations, making them appealing to a broad range of travelers, including younger demographics seeking unique experiences. Carnival noted that booking volumes for the two weeks around Black Friday and Cyber Monday reached an all-time high.

CEO Josh Weinstein stated, “We entered the year with the best booked position we have ever seen, and now have nearly two-thirds of our occupancy already on the books for 2024, at considerably higher prices.” The company expects net yields in the first quarter, which measures revenue per passenger per cruise day, to be up 16.5% year-on-year.

While Carnival’s fiscal 2024 net income forecast of $1.2 billion was in line with Wall Street expectations, its adjusted loss per share forecast for the current quarter of 22 cents was wider than the estimate of 12 cents. This was attributed to rising costs due to higher occupancy levels and increased advertising as the company heads into the promotion-heavy wave season.

Carnival reported a fourth-quarter net loss of $48 million, or 4 cents per share, compared to a loss of $1.6 billion, or $1.27 per share, in the same period the previous year. The fourth-quarter revenue of $5.4 billion exceeded market expectations of $5.31 billion.

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