Carnival Corporation & plc Reports Third-Quarter Earnings

Carnival Corporation & plc reported net income of $1.23 billion, or $1.49 diluted EPS, on revenues of $3.91 billion for its third quarter ended August 31, 2006.

Third-quarter revenues ramped up 8.3 percent, primarily driven by a 5.2 percent increase in capacity and an increase in revenue yields (revenue per available lower berth day).

Net revenue yields in current dollars for the third quarter of 2006 spiked 1.0 percent compared to the prior year.

Net revenue yields as measured on a local currency basis

(constant dollar basis), which the company believes better reflects

underlying revenue performance, were in line with the same period last

year. Gross revenue yields hiked 2.1 percent.

“Despite rising fuel costs and softness in Caribbean business, we still managed to grow earnings by over six percent in a difficult environment,” said Carnival Corporation & plc Chairman and CEO Micky Arison.

For the fourth quarter, advance booking levels are slightly behind last year at this time on a capacity adjusted basis, with average pricing slightly above last year in current dollars.

As a result, the company expects that net revenue yields for the fourth quarter of 2006 will increase slightly (flat to down slightly in constant dollars) compared to last year´s fourth quarter.