CARNIVAL CORPORATION & PLC REPORTS FIRST QUARTER EARNINGS

Carnival Corporation & plc today reported its results for the first quarter ended February 28, 2017.  The results of Carnival Corporation and Carnival plc have been consolidated and include results on a U.S. GAAP and adjusted basis.

1Q Highlights

• 1Q U.S. GAAP net income of $352 million, or $0.48 diluted EPS, compared to $142 million, or $0.18 diluted EPS for the prior year
• 1Q adjusted net income of $279 million, or $0.38 EPS, compared to adjusted net income of $301 million, or $0.39 EPS for the prior year (adjusted net income excludes unrealized gains and losses on fuel derivatives and other items totaling $73 million in gains for 1Q 2017 and $159 million of losses for 1Q 2016)
• 1Q net revenue yields in constant currency increased 3.8% compared to prior year, better than December guidance of up 1.5 to 2.5%
• 1Q net cruise costs excluding fuel per available lower berth day (“ALBD”) in constant currency increased 3.2% from prior year, compared to December guidance of up 1.5 to 2.5%, due to the timing of certain expenses
• Changes in fuel prices (including realized fuel derivatives) and currency exchange rates decreased earnings by $0.13 per share

Outlook

• At this time, cumulative advance bookings for the remainder of 2017 are well ahead of the prior year at considerably higher prices
• FY 2017 net revenue yields in constant currency are expected to be up approximately 3.0% compared to the prior year
• FY 2017 net cruise costs excluding fuel per ALBD in constant currency are expected to be up approximately 1.0% compared to the prior year
• FY 2017 adjusted EPS is expected to be in the range of $3.50 to $3.70, compared to FY 2016 adjusted EPS of $3.45
• 2Q 2017 adjusted EPS is expected to be in the range of $0.43 to $0.47, compared to $0.49 in 2Q 2016 due to unfavorable changes in fuel prices (including realized fuel derivatives) and currency exchange rates

President and Chief Executive Officer Arnold Donald commenting on these results:

“We are off to a good start delivering another quarter of operational improvement on top of a very strong first quarter last year. Our performance was driven by increased demand, particularly for our core Caribbean itineraries, leading to higher year-over-year ticket prices which enabled us to overcome the significant negative impact of both fuel and currency to exceed the high end of our guidance range.”

“Wave season, our peak booking period, was strong leaving us well positioned with bookings at considerably higher prices and with less inventory remaining for sale in 2017 compared to the prior year, resulting in increased earnings guidance. We are clearly benefiting from our efforts to increase cruise consideration through guest experience innovations, creative marketing, and public relations programs. We are reaching consumers through multiple touch points and laying the foundation for continued earnings improvement and sustained double digit returns on invested capital.”

Carnival Corporation & plc Reports First Quarter Earnings

MIAMI, March 28, 2017 -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) announced U.S. GAAP net income of $352 million, or $0.48 diluted EPS, for the first quarter of 2017 compared to U.S. GAAP net income for the first quarter of 2016 of $142 million, or $0.18 diluted EPS. First quarter 2017 adjusted net income of $279 million, or $0.38 adjusted EPS, compared to adjusted net income of $301 million, or $0.39 adjusted EPS, for the first quarter of 2016. Adjusted net income excludes unrealized gains and losses on fuel derivatives and other net charges, totaling $73 million in gains for the first quarter 2017 and $159 million of losses for the first quarter 2016. Revenues for the first quarter of 2017 of $3.8 billion were higher than the $3.7 billion in the prior year.

Carnival Corporation & plc President and Chief Executive Officer Arnold Donald noted, "We are off to a good start delivering another quarter of operational improvement on top of a very strong first quarter last year. Our performance was driven by increased demand, particularly for our core Caribbean itineraries, leading to higher year-over-year ticket prices which enabled us to overcome the significant negative impact of both fuel and currency to exceed the high end of our guidance range."

Key information for the first quarter 2017 compared to the prior year:

• Gross revenue yields (revenue per available lower berth day or "ALBD") increased 0.1 percent. In constant currency, net revenue yields increased 3.8 percent for 1Q 2017, better than December guidance of up 1.5 to 2.5 percent.
• Gross cruise costs including fuel per ALBD increased 2.9 percent. In constant currency, net cruise costs excluding fuel per ALBD increased 3.2 percent, compared to December guidance of up 1.5 to 2.5 percent, due to the timing of certain expenses.
• Changes in fuel prices (including realized fuel derivatives) and currency exchange rates decreased earnings by $0.13 per share.

Highlights during the first quarter included the January announcement at the Consumer Electronics Show in Las Vegas, Nevada of a potential breakthrough guest experience innovation the Ocean Platform -- featuring Ocean Medallion. The experience will debut on Princess Cruises' Regal Princess in November 2017 followed by additional Princess ships in 2018.

Fleet enhancement milestones included the official debut of Seabourn Cruises' newest ship, SeabournEncore, with its naming ceremony in Singapore. International recording artist and world's best-selling soprano Sarah Brightman presided over the naming ceremony as godmother of the stunning new 600-guest ship. Additionally, the company signed a memorandum of agreement with Italian shipbuilder Fincantieri to build two new cruise ships. The first is designated for Holland America Line to be delivered in 2021 with the second for Princess Cruises in 2022.

Also during the quarter, following the Corporation's historic sailings from the U.S. to Cuba through its Fathom brand, Carnival Cruise Line received approval to begin operating cruises to Cuba. Carnival Paradise will be the largest cruise ship to sail to Cuba from the U.S. when it begins calling in Havana in June 2017.

2017 Outlook

At this time, cumulative advance bookings for the remainder of 2017 are well ahead of the prior year at considerably higher prices. During the quarter, both booking volumes and pricing for the remainder of 2017 have been running ahead of last year.

Donald commented, "Wave season, our peak booking period, was strong leaving us well positioned with bookings at considerably higher prices and with less inventory remaining for sale in 2017 compared to the prior year, resulting in increased earnings guidance. We are clearly benefiting from our efforts to increase cruise consideration through guest experience innovations, creative marketing, and public relations programs. We are reaching consumers through multiple touch points and laying the foundation for continued earnings improvement and sustained double digit returns on invested capital."

The company expects full year 2017 net revenue yields in constant currency to be up approximately 3 percent compared to the prior year, better than December guidance of up approximately 2.5 percent. The company continues to expect full year net cruise costs excluding fuel per ALBD in constant currency to be up approximately 1 percent compared to the prior year. Changes in fuel prices (including realized fuel derivatives) and currency exchange rates compared to the prior year are expected to decrease earnings by $0.35 per share.

Taking the above factors into consideration, the company expects full year 2017 adjusted earnings per share to be in the range of $3.50 to $3.70 compared to December guidance of $3.30 to $3.60 and 2016 adjusted earnings per share of $3.45.

Second Quarter 2017 Outlook

Second quarter constant currency net revenue yields are expected to be up approximately 2.5 to 3.5 percent compared to the prior year. Net cruise costs excluding fuel per ALBD in constant currency for the second quarter of 2017 are expected to be higher by approximately 1.5 to 2.5 percent compared to the prior year. Changes in fuel prices (including realized fuel derivatives) and currency exchange rates compared to the prior year are expected to decrease earnings by $0.12 per share. Based on the above factors, the company expects adjusted earnings per share for the second quarter 2017 to be in the range of $0.43 to $0.47 versus 2016 adjusted earnings per share of $0.49.

Conference Call

The company has scheduled a conference call with analysts at 10:00 a.m. EDT (3:00 p.m. BST) today to discuss its 2017 first quarter results. This call can be listened to live, and additional information can be obtained, via Carnival Corporation& plc's Web site at http://www.carnivalcorp.com/ and http://www.carnivalplc.com/.

Carnival Corporation & plc is among the largest, most profitable and financially strong leisure travel companies in the world. With a portfolio of 10 cruise brands in North America, Europe, Australia and Asia, comprised of Carnival Cruise Line, Fathom, Holland America Line, Princess Cruises, Seabourn, AIDA Cruises, Costa Cruises, Cunard, P&O Cruises (Australia) and P&O Cruises (UK).

Together, these brands operate 102 ships visiting over 700 ports around the world and totaling 226,000 lower berths with 19 new ships scheduled to be delivered between 2017 and 2022. Carnival Corporation & plc also operates Holland America Princess Alaska Tours, the leading tour companies 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.

Additional information can be found on http://www.carnival.com/, http://www.fathom.org/, http://www.hollandamerica.com/, http://www.princess.com/, http://www.seabourn.com/, http://www.aida.de/, http://www.costacruise.com/, http://www.cunard.com/, http://www.pocruises.com.au/ and http://www.pocruises.com/.

Cautionary Note Concerning Factors That May Affect Future Results

Carnival Corporation and Carnival plc and their respective subsidiaries are referred to collectively in this release as "Carnival Corporation & plc," "our," "us" and "we." Some of the statements, estimates or projections contained in this release are "forward-looking statements" that involve risks, uncertainties and assumptions with respect to us, 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. All statements other than statements of historical facts are statements that could be deemed forward-looking. These statements are based on current expectations, estimates, forecasts and projections about our business and the industry in which we operate and the beliefs and assumptions of our management. We have tried, whenever possible, to identify these statements by using words like "will," "may," "could," "should," "would," "believe," "depends," "expect," "goal," "anticipate," "forecast," "project," "future," "intend," "plan," "estimate," "target," "indicate" and similar expressions of future intent or the negative of such terms.

Forward-looking statements include those statements that may impact our outlook including, but not limited to, the forecasting of our:

Because forward-looking statements involve risks and uncertainties, there are many factors that could cause our actual results, performance or achievements to differ materially from those expressed or implied in this release. This note contains important cautionary statements of the known factors that we consider could materially affect the accuracy of our forward-looking statements and adversely affect our business, results of operations and financial position. It is not possible to predict or identify all such risks. There may be additional risks that we consider immaterial or which are unknown. These factors include, but are not limited to, the following:

• Incidents, such as ship incidents, security incidents, the spread of contagious diseases and threats thereof, adverse weather conditions or other natural disasters and the related adverse publicity affecting our reputation and the health, safety, security and satisfaction of guests and crew
• Economic conditions and adverse world events affecting the safety and security of travel, such as civil unrest, armed conflicts and terrorist attacks
• Changes in and compliance with laws and regulations relating to environment, health, safety, security, tax and anti-corruption under which we operate
• Disruptions and other damages to our information technology and other networks and operations, and breaches in data security
• Ability to recruit, develop and retain qualified personnel
• Increases in fuel prices
• Fluctuations in foreign currency exchange rates
• Misallocation of capital among our ship, joint venture and other strategic investments
• Future operating cash flow may not be sufficient to fund future obligations and we may be unable to obtain financing
• Overcapacity in the cruise ship and land-based vacation industry
• Deterioration of our cruise brands' strengths and our inability to implement our strategies
• Continuing financial viability of our travel agent distribution system, air service providers and other key vendors in our supply chain and reductions in the availability of, and increases in the prices for, the services and products provided by these vendors
• Inability to implement our shipbuilding programs and ship repairs, maintenance and refurbishments on terms that are favorable or consistent with our expectations and increases to our repairs and maintenance expenses and refurbishment costs as our fleet ages
• Failure to keep pace with developments in technology
• Geographic regions in which we try to expand our business may be slow to develop and ultimately not develop how we expect and our international operations are subject to additional risks not generally applicable to our U.S. operations
• Competition from the cruise ship and land-based vacation industry
• Economic, market and political factors that are beyond our control
• Litigation, enforcement actions, fines or penalties
• Lack of continuing availability of attractive, convenient and safe port destinations on terms that are favorable or consistent with our expectations
• Union disputes and other employee relationship issues
• Decisions to self-insure against various risks or the inability to obtain insurance for certain risks at reasonable rates
• Reliance on third-party providers of various services integral to the operations of our business
• Business activities that involve our co-investment with third parties
• Disruptions in the global financial markets or other events that may negatively affect the ability of our counterparties and others to perform their obligations to us
• Our shareholders may be subject to the uncertainties of a foreign legal system since Carnival Corporation and Carnival plc are not U.S. corporations
• Small group of shareholders may be able to effectively control the outcome of shareholder voting
• Provisions in Carnival Corporation's and Carnival plc's constitutional documents may prevent or discourage takeovers and business combinations that our shareholders might consider to be in their best interests
• The DLC arrangement involves risks not associated with the more common ways of combining the operations of two companies

The ordering of the risk factors set forth above is not intended to reflect our indication of priority or likelihood.

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, we 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.

CONTACT:  MEDIA CONTACT - Roger Frizzell, +1 (305) 406 7862; INVESTOR RELATIONS CONTACT - Beth Roberts, +1 (305) 406 4832