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Carnival vs. Royal Caribbean: how they make money

The same facts for both companies, in the same order, from each company's own page and filings. This is not a ranking and says nothing about which share to own.

For learning only. Cityfort is not a registered investment adviser or broker-dealer and does not recommend buying or selling any security. Prices shown are dated and may be out of date.

Each company in 5 points

Carnival

  1. 1 · What it sells

    Carnival had 94 ships at Nov 30, 2025, selling cruise vacations under eight brands, including Carnival Cruise Line, Princess and AIDA, with revenue of $26.6 billion in FY2025.

    Sources and detail on the Carnival page
  2. 2 · Who pays it

    Guests paid for cruise tickets (65.4% of FY2025 revenue) and for onboard extras such as drinks, casinos, spas and shore excursions, plus other revenue (34.6%).

    Sources and detail on the Carnival page
  3. 3 · What it keeps from $100

    Of every $100 of FY2025 revenue, Carnival kept $16.8 as operating profit and $10.4 as net income, after $6.5 went on net interest, debt payoff costs, other items and tax.

    Sources and detail on the Carnival page
  4. 4 · Where the operating profit comes from

    North America brands made $3.2 billion of segment operating income in FY2025 and Europe brands $1.6 billion, while Cruise Support, which includes its ports and destinations, showed a $468 million loss.

    Sources and detail on the Carnival page
  5. 5 · The one thing to watch

    Fuel cost Carnival $615 million in Q3 FY2026, up from $451 million a year earlier, while debt stood at $23.9 billion on Aug 31, 2026.

    Sources and detail on the Carnival page

Royal Caribbean

  1. 1 · What it sells

    Royal Caribbean sells cruise vacations under the Royal Caribbean, Celebrity Cruises and Silversea brands, with a German joint venture making 69 ships in all, and had revenue of $17.94 billion in FY2025.

    Sources and detail on the Royal Caribbean page
  2. 2 · Who pays it

    Cruise guests pay all of it: in FY2025 fares were 69.8% of revenue and onboard spending and other items, such as drinks, casinos, shore tours and insurance, were 30.2%.

    Sources and detail on the Royal Caribbean page
  3. 3 · What it keeps from $100

    Of every $100 that came in during FY2025, Royal Caribbean kept $23.2 as net income, which includes $414 million of joint venture profit (mainly TUI Cruises) outside operations, while operating income was $27.4 per $100 of revenue.

    Sources and detail on the Royal Caribbean page
  4. 4 · Where the operating profit comes from

    Royal Caribbean reports one business segment and no profit by brand or region, so its $4,910 million of FY2025 operating income comes from the whole fleet, where 64.4% of revenue was from North American sailings.

    Sources and detail on the Royal Caribbean page
  5. 5 · The one thing to watch

    At Sep 30, 2026 Royal Caribbean had $22,355 million of debt and $14,950 million of ship purchase obligations, and it has agreed to pay about $3.0 billion for half of Sandals.

    Sources and detail on the Royal Caribbean page

Where each $100 went

Each company's own receipt for its latest full fiscal year, with matching lines in the same order where both have them.

Carnival

Where $100 went · FY2025

Where $100 of Carnival's money went in FY2025
Commissions, guest transportation and onboard costs$23.1
Payroll, food and other ship operating costs$30.0
Fuel$6.8
Selling and administration$12.8
Depreciation (ships wearing out)$10.5
Net interest, debt payoff costs, other and tax$6.5
Kept as net income$10.4
Total$100

Cityfort calculation from the FY2025 10-K. Of every $100 of FY2025 revenue (interest income is netted in the interest line): each line = line ÷ $26,622 million × 100.

Royal Caribbean

Where $100 went · FY2025

Where $100 of Royal Caribbean's money went in FY2025
Running the ships: crew pay, food, fuel and other operating costs$31.2
Commissions, transportation and onboard costs$18.2
Marketing, selling and administration$12.1
Depreciation and amortization (wear on ships)$9.3
Interest$5.4
Income tax and partners' share of profit$0.6
Kept as net income$23.2
Total$100

Cityfort calculation from the FY2025 10-K. Of every $100 that came in during FY2025 (revenue of $17,935 million plus $414 million of equity investment income, mainly TUI Cruises, $24 million of interest income and $17 million of other income): each line = line ÷ $18,390 million × 100. The last cost line is $82 million of income tax and $23 million of profit belonging to minority partners.

Line items differ because each company groups its costs its own way in its filings. Only on Carnival's receipt: Commissions, guest transportation and onboard costs; Payroll, food and other ship operating costs; Fuel; Selling and administration; Depreciation (ships wearing out); Net interest, debt payoff costs, other and tax. Only on Royal Caribbean's receipt: Running the ships: crew pay, food, fuel and other operating costs; Commissions, transportation and onboard costs; Marketing, selling and administration; Depreciation and amortization (wear on ships); Interest; Income tax and partners' share of profit.

Sources: Carnival S1 · Royal Caribbean S1

Revenue, net income and free cash flow

Up to five fiscal years for each company, drawn on one shared scale per measure. Amounts in US$ as reported (GAAP).

Revenue

Carnival

Royal Caribbean

Both charts use the same scale. Each company's own fiscal years.
See the numbers
Revenue of Carnival and Royal Caribbean by fiscal year, US$
Carnival yearCarnival revenueRoyal Caribbean yearRoyal Caribbean revenue
FY2021$1.9BFY2021$1.5B
FY2022$12.2BFY2022$8.8B
FY2023$21.6BFY2023$13.9B
FY2024$25.0BFY2024$16.5B
FY2025$26.6BFY2025$17.9B

Net income

Carnival

Royal Caribbean

Both charts use the same scale. Each company's own fiscal years.
See the numbers
Net income of Carnival and Royal Caribbean by fiscal year, US$
Carnival yearCarnival net incomeRoyal Caribbean yearRoyal Caribbean net income
FY2021−$9.5BFY2021−$5.3B
FY2022−$6.1BFY2022−$2.2B
FY2023−$74MFY2023$1.7B
FY2024$1.9BFY2024$2.9B
FY2025$2.8BFY2025$4.3B

Free cash flow

Carnival

Royal Caribbean

Both charts use the same scale. Each company's own fiscal years; free cash flow = cash from operations minus capital spending, as on each company's page.
See the numbers
Free cash flow of Carnival and Royal Caribbean by fiscal year, US$
Carnival yearCarnival free cash flowRoyal Caribbean yearRoyal Caribbean free cash flow
FY2021−$7.7BFY2021−$4.1B
FY2022−$6.6BFY2022−$2.2B
FY2023$997MFY2023$580M
FY2024$1.3BFY2024$2.0B
FY2025$2.6BFY2025$1.2B

Sources: Carnival S3, S24, S1, S2 · Royal Caribbean S2, S1

Who pays each company

Carnival

  • Guests buying cruise tickets · 65.4% of revenueThe fare for the cabin, most meals, entertainment and port visits: $17.4 billion in FY2025.
  • Guests spending onboard, and other revenue · 34.6% of revenueDrinks, casino, spa, shore excursions, internet, specialty dining and other revenue: $9.2 billion in FY2025.

Royal Caribbean

  • Guests: cruise fares · 69.8% of revenuePassenger ticket revenues of $12,515 million in FY2025, including $1.3 billion of port costs charged to guests. Guests who booked in the U.S. paid 74% of ticket revenue.
  • Guests: onboard spending and other · 30.2% of revenueOnboard and other revenues of $5,419 million: goods and services on board, casinos, cancellation fees, vacation protection insurance, pre- and post-cruise tours and port operations.

Sources: Carnival S1 · Royal Caribbean S1

Revenue by segment

Carnival

FY2025

Carnival revenue by segment, FY2025
SegmentRevenueShare
North America$17.6B66.1%
Europe$8.5B31.8%
Cruise Support$309M1.2%
Tour and Other$241M0.9%

Royal Caribbean

FY2025

Royal Caribbean revenue by segment, FY2025
SegmentRevenueShare
North America$11.5B64.4%
Europe$3.0B16.5%
Asia/Pacific$1.7B9.6%
Other regions$862M4.8%
Other revenues$864M4.8%

Sources: Carnival S1 · Royal Caribbean S1

Debt and cash

Carnival

Debt
$23.9B
Cash and investments
$1.2B

On Aug 31, 2026.

At Aug 31, 2026 Carnival's debt exceeded its cash by $22.7 billion, about 3.6 times its FY2025 cash from operations of $6.2 billion.

Royal Caribbean

Debt
$22.4B
Cash and investments
$851M

On Sep 30, 2026.

At Sep 30, 2026 Royal Caribbean owed $22.4 billion and held $851 million of cash; net debt was about 3.3 times its FY2025 cash from operations.

Sources: Carnival S4, S3, S1, S19 · Royal Caribbean S1, S3, S6

Who owns each company

Carnival

  • One class of shares.
  • Officers and directors as a group: 7.9% of shares (as of Jan 13, 2026).
  • Arison Group (including Chair Micky Arison): 8.1% (as of Nov 26, 2025).
  • Vanguard Capital Management: 6.9% (as of Apr 29, 2026).
  • BlackRock, Inc.: 6.8% (as of Jul 27, 2026).

Royal Caribbean

  • One class of shares.
  • Officers and directors as a group: 6.4% of shares (as of Apr 9, 2026).
  • Capital International Investors: 9.5% (as of May 14, 2026).
  • Capital World Investors: 7.6% (as of May 14, 2026).
  • BlackRock, Inc.: 7.5% (as of Apr 17, 2026).
  • 3 more holders on the Royal Caribbean page.

Sources: Carnival S15, S23, S16, S20, S4, S22, S21 · Royal Caribbean S10, S3, S20, S17, S18

Risks only one page tracks

Risks whose type the other company's page does not list. Both pages track risks of these types: debt, commodity costs, demand, legal cases. Every risk is on each company's page.

Carnival

  • Emissions rules (regulation)The EU Emissions Trading System cost Carnival $91 million in 2025, with 70% of emissions in scope. The company expects about $160 million in 2026, when 100% is in scope.
  • Currency moves (currency)The Europe segment was 31.8% of FY2025 revenue, and at Aug 31, 2026 euro fixed-rate debt was 33% of debt and euro floating-rate debt 10%. The 10-K names the euro, pound and Australian dollar as currency risks.

Royal Caribbean

  • Disease outbreaks (other)Cruising was suspended in 2020 and restarted slowly through mid-2022. Occupancy was 49.3% in FY2021, and the company lost $5,260 million that year.
  • More cruise ships across the industry (competition)At Dec 31, 2025, 47 new ships with about 113,000 berths were on order across the cruise industry for delivery through 2029, the 10-K said. Royal Caribbean's brands and TUI Cruises had twelve ships on order, for delivery from 2026 to 2032. The 10-K says extra capacity without more demand could push prices down.
  • New ventures and permits (execution)The company plans to grow private destinations from 3 to 8 by 2028, but said in May 2026 that Mexico would deny its first permit application for Perfect Day Mexico. The $3.0 billion Sandals stake still needs approvals.

Sources: Carnival S4, S1 · Royal Caribbean S1, S2, S11, S12

Key facts

How does Carnival make money compared with Royal Caribbean?
Carnival's revenue by segment in FY2025: North America 66.1%, Europe 31.8%, Cruise Support 1.2%, Tour and Other 0.9%. Royal Caribbean's revenue by segment in FY2025: North America 64.4%, Europe 16.5%, Asia/Pacific 9.6%, Other regions 4.8%, Other revenues 4.8%.
Which is bigger by revenue, Carnival or Royal Caribbean?
Carnival reported $26.6B of revenue in FY2025, and Royal Caribbean reported $17.9B in FY2025. The two fiscal years end in different months.
How much net income did Carnival and Royal Caribbean report?
Carnival reported net income of $2.8B in FY2025, and Royal Caribbean reported $4.3B in FY2025.
How much of every $100 did Carnival and Royal Caribbean keep as net income?
Carnival kept $10.4 of every $100 that came in during FY2025, and Royal Caribbean kept $23.2 in FY2025 (Cityfort calculation from each company's annual report).
How much debt and cash do Carnival and Royal Caribbean have?
Carnival had $23.9B of debt and $1.2B of cash and investments on Aug 31, 2026. Royal Caribbean had $22.4B of debt and $851M of cash and investments on Sep 30, 2026.
When do Carnival's and Royal Caribbean's fiscal years end?
Carnival: November 30. Royal Caribbean: Calendar year (Dec 31).

Sources: Carnival S3, S24, S1, S2, S4, S19 · Royal Caribbean S2, S1, S3, S6

Built from each company's page. Carnival updated Nov 6, 2026; Royal Caribbean updated Nov 7, 2026.

Sources

Royal Caribbean

  1. S1Form 10-K, fiscal year 2025 (ended Dec 31, 2025), Royal Caribbean Cruises Ltd. (SEC EDGAR), Feb 11, 2026
  2. S2Form 10-K, fiscal year 2023 (ended Dec 31, 2023), Royal Caribbean Cruises Ltd. (SEC EDGAR), Feb 21, 2024
  3. S3Form 10-Q, Q3 2026 (quarter ended Sep 30, 2026), Royal Caribbean Cruises Ltd. (SEC EDGAR), Oct 27, 2026
  4. S6Q3 2026 earnings release (8-K Exhibit 99.1, Oct 27, 2026), Royal Caribbean Cruises Ltd. (SEC EDGAR), Oct 27, 2026
  5. S102026 proxy statement (DEF 14A), Royal Caribbean Cruises Ltd. (SEC EDGAR), Apr 17, 2026
  6. S118-K filed Sep 23, 2026: agreement to acquire 50% of Sandals and Beaches Resorts (Item 8.01, Exhibit 99.1), Royal Caribbean Cruises Ltd. (SEC EDGAR), Sep 23, 2026
  7. S128-K filed May 20, 2026: statement on SEMARNAT and Perfect Day Mexico permits (Item 7.01), Royal Caribbean Cruises Ltd. (SEC EDGAR), May 20, 2026
  8. S17Schedule 13G/A (Amendment 6), Capital International Investors: 25,763,011 shares, 9.5%, as of Mar 31, 2026, Capital International Investors (SEC EDGAR), May 14, 2026
  9. S18Schedule 13G/A (Amendment 2), Capital World Investors: 20,614,423 shares, 7.6%, as of Mar 31, 2026, Capital World Investors (SEC EDGAR), May 14, 2026
  10. S20Schedule 13G/A (Amendment 12), The Vanguard Group: 0 shares reported after its Jan 12, 2026 internal realignment, The Vanguard Group (SEC EDGAR), Mar 27, 2026

Disclaimer

For learning only. Cityfort is not a registered investment adviser or broker-dealer and does not recommend buying or selling any security. Prices shown are dated and may be out of date.

Investing in securities involves risk, including loss of capital. Before making any investment decision, do your own research and consider consulting a registered investment adviser or other qualified professional.

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