Carnival Corporation & Plc Revises 2006 Out...

Carnival Corporation & Plc Revises 2006 Outlook 
 
    MIAMI, May 16 -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) 
announced today that it is revising 2006 earnings guidance based on several 
items, including lower revenue yields, higher fuel costs and a change in 
accounting.  
 
     Earnings for fiscal 2006 are now expected to be in the range of $2.65 to 
$2.75 per share, roughly in line with 2005 earnings of $2.70 per share. The 
company expects earnings for the second quarter of 2006 to be in the range of 
$0.43 to $0.45 per share. 
 
     Details of the revisions to the company's guidance are as follows: 
 
    * The company has reduced its outlook for net revenue yield improvement on  
      a local currency basis ("constant dollar basis") due to further weakness  
      in bookings, principally for sailings in the Caribbean during the second  
      half of 2006. Net revenue yields (net revenue per available lower berth  
      day) for the year in constant dollars are now expected to increase 1 to  
      2% versus the company's previous guidance of an increase of  
      approximately 2 to 3%.  This will reduce earnings by approximately $0.10  
      per share. Because of the strengthening of the euro and sterling  
      relative to the U.S. dollar since the time of its last guidance in  
      March, the company continues to expect full year 2006 net revenue yields  
      in current dollars to increase approximately 1 to 2%.  
 
    * Since the company's previous guidance, fuel costs have increased  
      significantly and are expected to further impact earnings per share for  
      the year 2006 by approximately $0.07. The cumulative impact of higher  
      fuel prices for full year 2006 is expected to be $265 million, or $0.32  
      per share, compared to the prior year.  The company's guidance is based  
      on the forward curve for fuel for the remainder of the year of  
      approximately $372 per metric ton.   
 
    * The company's guidance for the remainder of the year is based on  
      currency exchange rates of $1.27 to the euro and $1.86 to sterling,  
      which benefits guidance for the year by $0.04 per share compared to  
      previous guidance.  
 
    * Commencing with the first quarter of 2006, the company will change its  
      accounting policy for dry-dock costs from amortizing them over the time  
      between dry-docks, generally two to three years, to expensing dry-dock  
      costs as incurred. This change in accounting principle will reduce full  
      year 2006 earnings per share by approximately $0.08, including $0.04 per  
      share in the company's previously released 2006 first quarter, and $0.04  
      per share over the balance of the year. 
 
    With regard to the revised outlook, Carnival Corporation & plc Chairman 
and CEO Micky Arison commented, "Although we are disappointed having to lower 
our guidance for the year, we believe the fundamentals of our business remain 
sound and our long-term strategies position us well to grow our business in 
2007 and beyond."   
 
    Carnival Corporation & plc is the largest cruise vacation group in the 
world, with a portfolio of 12 cruise brands in North America, Europe and 
Australia, comprised of Carnival Cruise Lines, Holland America Line, Princess 
Cruises, Seabourn Cruise Line, Windstar Cruises, AIDA Cruises, Costa Cruises, 
Cunard Line, Ocean Village, P&O Cruises, Swan Hellenic, and P&O Cruises 
Australia. 
 
    Together, these brands operate 80 ships totaling approximately 139,000 
lower berths with 15 new ships scheduled to enter service between June 2006 
and fall 2009. Carnival Corporation & plc also operates the leading tour 
companies in Alaska and the Canadian Yukon, Holland America Tours and Princess 
Tours. 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. 
 
    The company has scheduled a call with analysts for today at 10 a.m. EST 
(15.00 London time). This call can be listened to live, and additional 
information can be obtained, via Carnival Corporation & plc's website at 
http://www.carnivalcorp.com or http://www.carnivalplc.com .  
 
    Cautionary note concerning factors that may affect future results  
    Some of the statements 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, outlook, 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.  You can find many, but not all, 
of these statements by looking for words like "will," "may," "believes," 
"expects," "anticipates," "forecast," "future," "intends," "plans," and 
"estimates" and for similar expressions.  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 the 
forecasting of earnings per share, net revenue yields, booking levels, 
pricing, occupancy, operating, financing and/or tax costs, fuel costs, costs 
per available lower berth day, estimates of ship depreciable lives and 
residual values, outlook or business prospects. These factors include, but are 
not limited to, the following: risks associated with the DLC structure, 
including the uncertainty of its tax status; general economic and business 
conditions, which may impact levels of disposable income of consumers and the 
net revenue yields for cruise brands of Carnival Corporation & plc; conditions 
in the cruise and land-based vacation industries, including competition from 
other cruise ship operators and providers of other vacation alternatives and 
increases in capacity offered by cruise ship and land-based vacation 
alternatives; risks associated with operating internationally; the 
implementation of U.S. regulations requiring U.S. citizens to obtain passports 
for travel to or from additional foreign destinations; the international 
political and economic climate, armed conflicts, terrorist attacks and threats 
thereof, availability of air service, other world events and adverse 
publicity, and their impact on the demand for cruises; accidents and other 
incidents affecting the health, safety, security and vacation satisfaction of 
passengers, including machinery and equipment failures, which could cause the 
alteration of itineraries or cancellation of a cruise or a series of cruises 
and the impact of the spread of contagious diseases; changing consumer 
preferences, which may, among other things, adversely impact the demand for 
cruises; the ability of Carnival Corporation & plc to implement its 
shipbuilding programs and brand strategies and to continue to expand its 
business worldwide; the ability of Carnival Corporation & plc to attract and 
retain qualified shipboard crew and maintain good relations with employee 
unions; the ability to obtain financing on terms that are favorable or 
consistent with Carnival Corporation & plc's expectations; the impact of 
changes in operating and financing costs, including changes in foreign 
currency exchange rates and interest rates and fuel, food, payroll, insurance 
and security costs; the impact of pending or threatened litigation; changes in 
the environmental, health, safety, security, tax and other regulatory regimes 
under which Carnival Corporation & plc operates; continued availability of 
attractive port destinations; the ability to successfully implement cost 
reduction plans; continuing financial viability of Carnival Corporation & 
plc's travel agent distribution system and air service providers; and unusual 
weather patterns or natural disasters, such as hurricanes and earthquakes.  
 
    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 listing rules, Carnival Corporation & plc expressly disclaims 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. 
 
    MEDIA CONTACTS                 INVESTOR RELATIONS CONTACT 
    US                             US/UK 
    Carnival Corporation & plc     Carnival Corporation & plc 
    Tim Gallagher                  Beth Roberts 
    1 305 599 2600, ext. 16000     1 305 406 4832 
                               
    UK                              
    Brunswick Group            
    Sophie Fitton/Sarah Lindgreen   
    44 (0) 20 7404 5959 
 
SOURCE  Carnival Plc 
    -0-                             05/16/2006 
    /Web site:  http://www.carnivalcorp.com 
                http://www.carnivalplc.com / 
    (CCL CUK)