A：The company's significant operational achievements include achieving a record net income of $2 billion and surpassing the pre-pandemic benchmark by nearly 10%. Additionally, the return on invested capital (ROIC) for the trailing 12 months was 13%, the first time it reached the teens since 2007, highlighting fundamental improvements in operational performance.

A：The company's leverage has decreased to 3.6 times net debt to EBITDA, which is接近investment grade leverage metrics. This improvement positions the company to use its strong and growing free cash flow not only for responsible deleveraging but also for returning capital to shareholders. The company executed on this strategy by calling the remaining converts for $500 million in cash.

A：The progress of new ships and destination developments includes the addition of Star Princess to the fleet and the ongoing rollout of the destination development strategy. The new ship, Celebration Key, has received rave reviews, with nearly half a million guests visiting since its opening. The company expects continuous improvement based on guest feedback. Furthermore, the opening of the pier expansion at Half Moon Key in the Caribbean is projected to enhance the guest experience and provide a new reason for repeat guests to return. The expected investment returns on these projects are meeting expectations and are contributing to the company's forecast.

A：The new destination, Celebration Key, is contributing to the company's growth by increasing consideration among new-to-cruise guests and providing repeat guests with an additional reason to return. The strategic portfolio is bolstered by the company's significant assets in the Caribbean, Alaska, and Europe, which are performing strongly. The company plans to further monetize these strategic assets by driving consumer consideration and conversion, capturing over 8 million guest visits to its exclusive Caribbean destinations next year, which is almost equal to the rest of the cruise industry combined.

A：The strategic portfolio of brands and assets is significant as it is the largest and most diverse in the industry. It includes a strategic focus on high-return brands, with seven ships on order for Carnival and Aida combined. The company has many other brands that are quickly progressing up the internal leaderboard. Significant upcoming projects include Aida's modernization through its Evolutions program, new ship orders, a new marketing campaign, and an enhanced loyalty program. These initiatives are expected to progress the company's profitability and returns and further balance sheet improvement.

A：The company's refinancing efforts and balance sheet improvements include the deleveraging strategy mentioned earlier, where the net debt to EBITDA ratio is approaching investment-grade metrics. The company is focusing on transferring enterprise value from bondholders back to shareholders. Additionally, the company has been active in rebuilding its financial fortress through refinancing and deleveraging efforts, although specific details on these efforts were not provided in the transcript excerpt.

A：The 5% reduction in second cruise costs without fuel was primarily driven by cost-saving initiatives that were firmed up during the quarter. These initiatives are expected to flow through to the full-year September guidance.

A：The 4 cents per share favorability is a combination of improved depreciation expense and better fuel prices, as well as favorable interest income and expense.

A：Customer deposits at the end of the third quarter were at a record high of $7.1 billion, up over $300 million from the prior year, driven by higher ticket pricing and increased sales of pre-cruise onboard revenue items.

A：The updated net income guidance for the full year is approximately $2.9 billion, or $2.14 per share, which represents a $235 million or $0.17 per share improvement over June guidance. The full year improvement is driven by three factors: carrying over the third quarter favorability of 13 cents per share to the full year, an additional 3 cents per share from fourth quarter interest expense favorability, and a 1 cent per share benefit from improved fourth quarter fuel prices.

A：The projected EBITDA for the fourth quarter is over $7 billion, which is a 15% improvement over 2024. This is despite the fourth quarter having flat cruise costs with June guidance, benefiting from some third-quarter cost savings but offset by higher variable compensation due to improved operating results.

A：For 2026, the capacity increase is forecasted to be just eight-tenths of a percent compared to 2025. Booking trends have continued to improve with nearly half of 2026 already booked at higher prices.

A：Carnival Cruise Line's new loyalty program, Carnival Rewards, starting in June 2026, is expected to have a year-over-year impact on yields in 2026, which is anticipated to be about half a point.

A：The operating expenses for the new CCL Lagoon and the new pier at Relax Away Half Moon Key in 2026 are expected to impact the overall year-over-year cost comparisons by about half a point. Additional expenses from the 2026 dry docks could impact year-over-year assumptions by up to one percentage point.

A：During the quarter, the company continued its refinancing strategy to manage interest expense and maturity towers, reducing secured debt by nearly $2.5 billion. They issued two senior unsecured notes, completed one bank loan, and have reduced debt by over $11 billion since January. This progress has led to an expected net debt to EBITDA ratio improvement from 4.3 times at the end of 2024 to 3.6 times at the end of 2025.

A：The company is expecting to end the year with a marked improvement in the net debt to EBITDA ratio and is targeting a ratio of under three times. The redemption of all outstanding convertible notes, which will improve net debt by $600 million, implies a net debt to EBITDA ratio forecasted to be 3.5 times very early in fiscal year 2026. This will also result in a lower share count for the calculation of fully diluted EPS for 2026 by approximately 13 million shares.

A：The company's investment-grade metrics are expected to continue to improve as EBITDA grows and debt levels shrink. With strong investment-grade metrics in the future, an investment-grade upgrade is anticipated, resulting in the release of remaining secured debt. This progression will facilitate the transition of value from debt holders back to shareholders.

A：The speaker indicates a positive outlook on the booking strategy for the upcoming year, suggesting it will be similar to, or possibly better than, the previous year despite some choppiness in the past few months. There is an acknowledgment of learning from last year which resulted in a strong finish despite volatility.

A：The speaker describes the bookings situation for the upcoming year as unprecedented, indicating a significant increase in bookings during the third quarter compared to the previous year. There is also a belief that despite headwinds, the strategies in place will mitigate cost impacts.

A：The company is facing headwinds for the beginning of 2026 including a 50 basis point impact on yields for the reward program, a 100 basis point impact for dry docks, and a 50 basis point impact for the build-out of the rest of the island, amounting to a total of a 200 basis point headwind. The company plans to meet with each of their brands next week to discuss how they can up their game and mitigate cost headwinds.

A：The company has made investments in advertising, revenue management systems, and people to ensure the right capabilities and leadership are in place. These investments are expected to yield further improvements, with the current pace of execution exceeding expectations, and there is a belief that there is more potential for success in the future.

A：The company plans to accelerate the return of cash to shareholders, targeting the end of the fiscal year or early 2026, depending on the acceleration in the conversion of their current plans. Although a decision on capital return has not been made, it is clear that dividends are a priority and will be reestablished, with buybacks also being considered in the future. The company has no capacity growth for the next few years, which should allow for significant free cash flow to be returned to shareholders through dividends and buybacks.

A：The speaker indicates that they plan to give longer-term targets early on in the second quarter to provide clarity on their expectations for net yields, margins, and returns. They expect a continued track record of improvement over time, which aligns with their past performance and future expectations.

A：The speaker indicates that they expect to have a continued track record of improvement in yields over time, suggesting a focus on consistent progress rather than a specific projected margin.

A：The company plans to set targets for next year, with a focus on growing yields faster than costs over time. They leverage their scale to identify and implement savings opportunities and expect to continue this strategy into the future, despite the challenges of a low capacity environment.

A：The lack of capacity is part of the company's strategy and impacts the cost structure by requiring more spending per unit. The company aims to reduce costs where efficiency can be gained and to leverage their scale to offset these higher costs. They are working hard to perform well in all circumstances, recognizing the challenges of a low capacity environment.

A：The laggard brands are improving due to strategic shifts and operational changes, such as focusing on customer experience. Further investments in these brands include support and assistance to help them progress further, rather than major overhauls or significant additional investments.

A：For 2027, the company plans to have fewer dry dock days compared to 2026, which may present opportunities. However, the speaker cautions that plans can change and the potential benefits for future years are uncertain at this stage.

A：The company is actively considering mid-life ship refurbishment programs and is looking at new builds on a case-by-case basis. They are evaluating potential investments based on incremental costs and expected returns, with the potential for significant returns similar to the ieta evolution program. The company is considering these investments carefully and will share more information as it becomes available.

A：While the company has a strong presence in Galveston and a loyal customer base from Texas, competition from other cruise lines is increasing. To maintain a competitive edge, the company aims to continually improve the guest experience, stay abreast of opportunities for diversifying offerings, and leverage the benefits of their scale and diverse portfolio. They recognize the importance of every home port and are committed to keeping up with market developments.

A：Diversification and the strength of the global portfolio are providing a benefit to Alaska, as they help in managing the impacts of weaker regions like North America and contribute to the company's overall enjoyment of the results.

A：The company is looking at the possibility of returning capital to shareholders and will have conversations with the board regarding this. They are considering their circumstances and plan to make decisions on how much, when, and how to execute these returns. However, they are not ready to make any definitive statements on the size or magnitude of such returns at this stage.

A：The company's target is to reach a point where leverage is at least 1.5 times before considering more substantial shareholder returns. They aim to walk and chew gum simultaneously, meaning they can manage both increasing shareholder returns and controlling leverage effectively once they reach their target leverage ratio.

A：The company is focusing on investing in itself on the capital side, such as midlife ship refurbishments like the ones being done with IA, and Phase II of Celebration Key. However, none of these investments are expected to match the cost of a new build.

A：The company is working on improving the arrivals and departures scheduling of ships to ensure guest experiences are not negatively impacted when multiple ships are in port. They are also looking at structural improvements, such as making the beach less rocky, and are constantly reviewing and enhancing the food and beverage offerings and their locations. The company is listening to feedback and applying learnings to improve operations continuously.

A：The company acknowledges that the Caribbean market has been growing sustainably for 20 years, which is impressive considering the competition and other alternatives that exist for land-based vacations. The company plans to continue investing in areas that have a significant impact, such as destination strategies and enhancing existing itineraries like those offered at Celebration Key. They are also focusing on long-term presence in the Caribbean as a key part of their identity and strategy.

A：The company is encouraging its brands to optimize between the price they can achieve and occupancy. While it is easy to sell ships at full occupancy, the focus is on maximizing total revenue rather than just occupancy rates. There is an opportunity to improve occupancy, which was slightly below 2019 levels at the end of the third quarter. The company is working on incremental adjustments brand by brand to better balance price and occupancy.