MIAMI (June 21, 2011) – Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) reported net income of $206 million, or $0.26 diluted EPS, on revenues of $3.6 billion for its second quarter ended May 31, 2011. Net income for the second quarter of 2010 was $252 million, or $0.32 diluted EPS, on revenues of $3.3 billion.

Commenting on the second quarter, Carnival Corporation & plc Chairman and CEO Micky Arison said, “Our North America brands’ revenue yields increased 3 percent in the second quarter while yields for our Europe, Australia and Asia brands were up slightly (constant dollars), having been affected by the geo-political events which unfolded in the Middle East and North Africa, as well as the earthquake and nuclear disaster in Japan. The revenue yield improvement was more than offset by higher fuel prices which cost the company approximately $150 million, or $0.19 per share.”

Key metrics for the second quarter 2011 compared to the prior year were as follows:
• On a constant dollar basis net revenue yields (net revenue per available lower berth day) increased 2.3 percent for 2Q 2011, which was in line with the company’s March guidance, up 1.5 to 2.5 percent. Net revenue yields in current dollars increased 6.0 percent due to favorable currency exchange rates. Gross revenue yields increased 5.8 percent in current dollars.
• Net cruise costs excluding fuel per available lower berth day (“ALBD”) increased 2.7 percent in constant dollars, which was in line with March guidance, up 2.0 to 3.0 percent. Gross cruise costs including fuel per ALBD in current dollars increased 10.3 percent.
• Fuel prices increased 35 percent to $673 per metric ton for 2Q 2011 from $498 per metric ton in 2Q 2010 and was higher than March guidance of $659 per metric ton.

Continuing with its strategic growth initiatives, the company took delivery of its 100th ship, Carnival Cruise Lines’ 3,690-passenger Carnival Magic, in late April. Two additional ships, AIDA Cruises’ 2,194-passenger AIDAsol and Seabourn’s 450-passenger Seabourn Quest were also delivered during the 2011 second quarter.

Also, during the second quarter a contract was finalized with Fincantieri for the construction of a 3,611-passenger ship for P&O Cruises (UK) scheduled to be delivered in February 2015. The order marks Carnival Corporation & plc’s first ship delivery for 2015, aligned with the company’s strategy to have two to three ships constructed per year.

2011 Outlook
At this point in time, cumulative advance bookings for the remainder of the year are at higher prices with lower occupancies versus last year. For the last six weeks, booking volumes for the second half of 2011 are well ahead of the prior year for the North America brands, as well as, the Europe, Australia and Asia brands. Pricing for the North America brands remains strong. Pricing for the Europe, Australia and Asia brands has been significantly affected by the prolonged conflict in the Middle East and North Africa regions and earthquake in Japan, which necessitated very close-in deployment changes for more than 300 cruises. The Southern Europe brands were particularly affected with over 40 percent of their deployments in these areas.

As previously announced, the impact of these events are expected to cost the company an additional $0.15 per share in the second half of the year and reduces full year revenue yields by approximately 1.0 percent. The company now expects full year net revenue yields, on a constant dollar basis, to increase 1.5 to 2.5 percent, compared to its March guidance increase of 2.5 to 3.5 percent. Net revenue yields on a current dollar basis are expected to increase 4.0 to 5.0 percent for the full year 2011 compared to 2010.

Arison noted, “Our North America brands continue to perform well, benefiting from the gradual economic recovery, with strong yield growth expected in the second half of the year. We expect lower yields for our Europe, Australia and Asia segment in the second half of 2011 as a result of the significant deployment changes in Europe. Despite the considerable challenges we have faced this year, the long-term fundamentals of our business remain sound.”

The company continues to expect net cruise costs excluding fuel per ALBD for the full year 2011 to be flat to up 1.0 percent on a constant dollar basis, which is in line with its March guidance.

Taking all the above factors into consideration, the company now forecasts full year 2011 fully diluted earnings per share to be in the range of $2.40 to $2.50, compared to 2010 earnings of $2.47 per share. Based on the current spot prices for fuel, fuel costs for the full year 2011 are now expected to increase $515 million compared to 2010, costing an additional $0.65 per share.

Third Quarter 2011
Third quarter constant dollar net revenue yields are expected to increase 1.0 to 2.0 percent (up 5.5 to 6.5 percent on a current dollar basis) compared to the prior year. Net cruise costs excluding fuel per ALBD for the third quarter are expected to be 2.5 to 3.5 percent higher on a constant dollar basis (up 7.0 to 8.0 percent on a current dollar basis) compared to prior year. Fuel costs for the third quarter are expected to increase $170 million compared to the prior year, costing an additional $0.21 per share.

Based on the above factors and using current fuel prices and currency exchange rates, the company expects fully diluted earnings for the third quarter 2011 to be in the range of $1.60 to $1.64 per share, compared to $1.62 per share in 2010.

Selected Key Forecast Metrics
Full Year 2011 Third Quarter 2011
Current Dollars Constant Dollars Current Dollars Constant Dollars
Change in:
Net revenue yields 4.0 to 5.0% 1.5 to 2.5% 5.5 to 6.5% 1.0 to 2.0%
Net cruise costs excl. fuel / ALBD 2.5 to 3.5% 0.0 to 1.0% 7.0 to 8.0% 2.5 to 3.5%

Full Year 2011 Third Quarter 2011

Fuel price per metric ton $639 $670
Fuel consumption (metric tons in thousands) 3,415 860
Currency
Euro $1.41 to €1 $1.43 to €1
Sterling $1.61 to £1 $1.62 to £1

The company has scheduled a conference call with analysts at 10:00 a.m. EDT (3:00 p.m. BST) today to discuss its 2011 second quarter earnings. This call can be listened to live, and additional information can be obtained, via Carnival Corporation & plc’s Web site at www.carnivalcorp.com and www.carnivalplc.com.

Carnival Corporation & plc is the largest cruise vacation group in the world, with a portfolio of cruise brands in North America, Europe, Australia and Asia, comprised of Carnival Cruise Lines, Holland America Line, Princess Cruises, Seabourn, AIDA Cruises, Costa Cruises, Cunard, Ibero Cruises, P&O Cruises (UK) and P&O Cruises (Australia).

Together, these brands operate 100 ships totaling approximately 197,000 lower berths with eight new ships scheduled to be delivered between now and February 2015. Carnival Corporation & plc also operates Holland America Princess Alaska Tours, the leading tour company in Alaska and the Canadian Yukon. Traded on both the New York and London Stock Exchanges, Carnival Corporation & plc is the only group in the world to be included in both the S&P 500 and the FTSE 100 indices.

Cautionary Note Concerning Factors That May Affect Future Results
Some of the statements, estimates or projections contained in this earnings release are “forward-looking statements” that involve risks, uncertainties and assumptions with respect to Carnival Corporation & plc, including some statements concerning future results, outlooks, plans, goals and other events which have not yet occurred. These statements are intended to qualify for the safe harbors from liability provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We have tried, whenever possible, to identify these statements by using words like “will,” “may,” “could,” “should,” “would,” “believe,” “expect,” “anticipate,” “forecast,” “future,” “intend,” “plan,” “estimate” and similar expressions of future intent or the negative of such terms. Because forward-looking statements involve risks and uncertainties, there are many factors that could cause Carnival Corporation & plc’s actual results, performance or achievements to differ materially from those expressed or implied in this earnings release. Forward-looking statements include those statements which may impact, among other things, the forecasting of Carnival Corporation & plc’s earnings per share, net revenue yields, booking levels, pricing, occupancy, operating, financing and tax costs, fuel expenses, costs per available lower berth day, estimates of ship depreciable lives and residual values, liquidity, goodwill and trademark fair values and outlook. These factors include, but are not limited to, the following: general economic and business conditions; fluctuations in foreign currency exchange rates; the international political climate, armed conflicts, terrorist and pirate attacks, vessel seizures, and threats thereof, and other world events affecting the safety and security of travel; competition from and overcapacity in the cruise ship or land-based vacation industries; accidents, the spread of contagious diseases and threats thereof, adverse weather conditions or natural disasters and other incidents affecting the health, safety, security and satisfaction of guests and crew; adverse publicity concerning the cruise industry in general, or Carnival Corporation & plc in particular, including any adverse impact that cruising may have on the marine environment; changes in and compliance with laws and regulations relating to the protection of persons with disabilities, employment, environment, health, safety, security, tax and other regulations under which Carnival Corporation & plc operates; economic, market and political factors that are beyond Carnival Corporation & plc’s control, which could increase its operating, financing and other costs; the ability of Carnival Corporation & plc to implement its shipbuilding programs and ship repairs, maintenance and refurbishments on terms that are favorable or consistent with its expectations; increases in Carnival Corporation & plc’s repairs and maintenance expenses and refurbishment costs as its fleet ages; the continued strength of Carnival Corporation & plc’s cruise brands and its ability to implement its brand strategies; Carnival Corporation & plc’s international operations are subject to additional risks not generally applicable to its U.S. operations; geographic regions in which Carnival Corporation & plc tries to expand its business may be slow to develop and ultimately not develop how it expects; whether Carnival Corporation & plc’s future operating cash flow will be sufficient to fund future obligations and whether it will be able to obtain financing, if necessary, in sufficient amounts and on terms that are favorable or consistent with its expectations; Carnival Corporation & plc counterparties’ abilities to perform; continuing financial viability of Carnival Corporation & plc’s travel agent distribution system, air service providers and other key vendors in its supply chain and reductions in the availability of, and increases in the pricing for, the services and products provided by these vendors; Carnival Corporation & plc’s decisions to self-insure against various risks or its inability to obtain insurance for certain risks at reasonable rates; disruptions and other damages to Carnival Corporation & plc’s information technology and other networks and operations and breaches in data security; loss of key personnel or Carnival Corporation & plc’s ability to recruit or retain qualified personnel; union disputes and other employee relation issues; lack of continuing availability of attractive, convenient and safe port destinations; and risks associated with the dual listed company arrangement. Forward-looking statements should not be relied upon as a prediction of actual results. Subject to any continuing obligations under applicable law or any relevant stock exchange rules, Carnival Corporation & plc expressly disclaim any obligation to disseminate, after the date of this release, any updates or revisions to any such forward-looking statements to reflect any change in expectations or events, conditions or circumstances on which any such statements are based.

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