Carnival's Limited Ship Orders to Boost Demand Over Capacity

During the company's third-quarter earnings call, Carnival Corporation CEO Josh Weinstein discussed the company's restrained shipbuilding plans for the coming years.

“We have just three (new) ships spread over the next four years,” Weinstein explained. “That’s one ship delivery in 2025, none in 2026, and one ship in each of 2027 and 2028. This limited orderbook should also position us well to continue to create demand in excess of capacity growth.”

The new ships include the Star Princess set to debut in 2025, followed by two additional vessels for Carnival Cruise Line slated for 2027 and 2028.

With limited growth in capacity, Weinstein emphasized that increased demand will lead to higher pricing for Carnival's cruise offerings. “We have almost no capacity growth. So all of that increased demand is just going to result in who wants to pay the most to get on our ships, and that’s what we’re driving for.”

Carnival’s shipbuilding plans are locked through 2028, a timeline Weinstein described as very favorable. He also revealed the next phase of Carnival’s newbuild program, known as Project Ace, which will start in 2029.

“The focus of all that EBITDA generation is really its cash flow,” he added. “We’re going to use the headroom with a reduced capital expenditures to pay down debt.”