News Release

Carnival Corporation & plc Reports Second Quarter Earnings

MIAMI, June 19 /PRNewswire-FirstCall/ -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) reported net income for its second quarter ended May 31, 2007 of $390 million, or $0.48 diluted EPS, compared to net income for the second quarter of 2006 of $380 million, or $0.46 diluted EPS. Revenues for the second quarter 2007 increased to $2.90 billion from $2.66 billion in the second quarter of 2006.

Net income for the six months ended May 31, 2007, was $673 million, or $0.83 diluted EPS, on revenues of $5.59 billion, compared to net income of $631 million, or $0.77 diluted EPS, on revenues of $5.13 billion for the same period in 2006.

Carnival Corporation & plc Chairman and CEO Micky Arison said that second quarter results came in largely in line with expectations.

"Revenues for our North American and European cruise brands were both in line with our expectations. The Caribbean, which still had a relatively high percentage of our capacity during the second quarter, continued to experience price pressure. However, increases in revenue yields from our European brands together with the strengthening Euro and Sterling produced significant revenue yield growth outside of North America," Arison said. "The decision to expand our European cruise business is working, with the strength of our European brands offsetting some cyclical weakness in the contemporary segment of North America," Arison noted.

Arison also pointed out that fuel costs came in higher than forecasted, which impacted earnings by approximately $0.02 per share.

    Key metrics for the second quarter of 2007 were as follows:

     * Net revenue yields (net revenue per available lower berth day) for Q2
       2007 increased 0.2 percent (down 2.6 percent on a constant dollar
       basis) compared to the prior year. Gross revenue yields were
       approximately equal to the prior year.

     * Net cruise costs per available lower berth day ("ALBD") for Q2 2007
       increased 1.3 percent (down 1.5 percent on a constant dollar basis)
       compared to the prior year. Gross cruise costs per ALBD increased 0.7
       percent compared to the prior year.

     * Excluding fuel, net cruise cost per ALBD on a constant dollar basis was
       equal to the prior year.

     * Fuel price increased 7 percent to $333 per metric ton compared to our
       previous guidance of $310 per metric ton. Fuel price per metric ton in
       the second quarter of 2006 was $354.

Recently, the company also took steps towards the ongoing modernization of its fleet by selling P&O Australia's Pacific Star and announcing the sale of Cunard's Queen Elizabeth 2, which are expected to leave the fleet in March and November of 2008, respectively. In addition, the company took delivery of three highly acclaimed new ships in the second quarter -- Princess Cruises' 3,100-passenger Emerald Princess, AIDA Cruises' 2,050-passenger AIDAdiva, and Costa Cruises' 3,000-passenger Costa Serena, all of which are enjoying very successful inaugural seasons in Europe this summer.

The company also noted that it continues to work towards the completion of the previously announced joint ventures with Iberojet in Spain and TUI in Germany. The company continues to expect both joint ventures to be completed in the second half of the year. Both transactions may be subject to regulatory review.

Outlook for the Remainder of 2007

On a cumulative basis, occupancy for advance bookings taken for the second half of 2007 are nicely ahead of last year with pricing on a current dollar basis down slightly compared to last year.

As the company moves into the second half of the year it has more deployments in Europe and less capacity devoted to the Caribbean. "Our North American brands are enjoying strong European and Alaskan programs and our European brands are performing well against strong comparisons last year," Arison said. He also noted that pricing for Caribbean sailings in the second half of 2007 appears to have stabilized, which he attributed to consumer recognition of the tremendous value proposition of these cruise vacations. Since the beginning of the year, booking volumes for Carnival Cruise Lines, which has the vast majority of its sailings in the Caribbean, are up approximately 18 percent year over year. This compares to a 5.5 percent capacity increase for the full year.

The company's 2007 full year revenue yield expectations on a constant dollar basis remain on track with the guidance given last March. Excluding fuel, cost guidance for the year also remains unchanged on a constant dollar basis. However, fuel prices have increased significantly since our previous guidance, which has reduced earnings estimates by approximately $0.12 per share for the full year. Based on the above, the company expects full year 2007 earnings per share to be in a range of $2.85 to $2.95, compared to $2.77 per share in 2006. For the third quarter of 2007, the company expects earnings per share to be in the range of $1.60 to $1.62 per share, compared to $1.49 per share in 2006.



    Selected Key Forecast Metrics:

                                      Full Year 2007        Third Quarter 2007

                                    Current   Constant      Current   Constant
                                    Dollars   Dollars       Dollars   Dollars
    Change in:
    Net revenue yields                 1%     -1 to -2%     1 to 2%  0 to -1%
    Net cruise cost per ALBD      2 to 3%       0 to 1%     2 to 3%        1%


                                     Full Year 2007      Third Quarter 2007

    Fuel price per metric ton             $346                  $375
    Fuel consumption (metric tons
     in thousands)                       3,000                   755
    Currency
      Euro                             $1.33 to 1            $1.33 to 1
      Sterling                         $1.97 to 1            $1.97 to 1


The company has scheduled a conference call with analysts at 10:00 a.m. EDT (15.00 London time) today to discuss its 2007 second quarter earnings. This call can be listened to live, and additional information can be obtained, via Carnival Corporation & plc's Web site at www.carnivalcorp.com and www.carnivalplc.com.

Carnival Corporation & plc is the largest cruise vacation group in the world, with a portfolio of cruise brands in North America, Europe and Australia, comprised of Carnival Cruise Lines, Holland America Line, Princess Cruises, Seabourn Cruise Line, AIDA Cruises, Costa Cruises, Cunard Line, Ocean Village, P&O Cruises and P&O Cruises Australia.

Together, these brands operate 82 ships totaling 154,000 lower berths with 17 new ships scheduled to enter service between December 2007 and June 2011. Carnival Corporation & plc also operates Holland America Tours and Princess 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.

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. We have tried, wherever possible, to identify these statements by using words like "will," "may," "believe," "expect," "anticipate," "forecast," "future," "intend," "plan," and "estimate" and 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: general economic and business conditions, which may adversely impact the levels of Carnival Corporation & plc's potential vacationers' discretionary income and this group's confidence in the U.S. economy, and thereby reduce the net revenue yields for Carnival Corporation & plc's cruise brands; the international political and economic climate, armed conflicts, terrorist attacks and threats thereof, availability of air service and other world events, and their impact on the demand for cruises; conditions in the cruise and land-based vacation industries, including competition from other cruise ship operators and providers of vacation alternatives and increases in capacity offered by cruise ship and land-based vacation alternatives; accidents, unusual weather conditions or natural disasters, such as hurricanes and earthquakes and other incidents (including machinery and equipment failures or improper operation thereof) which could cause the alteration of itineraries or cancellation of a cruise or series of cruises, and the impact of the spread of contagious diseases, affecting the health, safety, security and/or vacation satisfaction of passengers; adverse publicity concerning the cruise industry in general, or Carnival Corporation & plc's in particular, could impact the demand for Carnival Corporation & plc's cruises; lack of acceptance of new itineraries, products and services by Carnival Corporation & plc's guests; changing consumer preferences, which may, among other things, adversely impact the demand for cruises; changes in and compliance with the environmental, health, safety, security, tax and other regulatory regimes under which Carnival Corporation & plc operate, including the implementation of U.S. regulations requiring U.S. citizens to obtain passports for sea travel to or from additional foreign destinations; the impact of changes in operating and financing costs, including changes in foreign currency exchange rates and interest rates and fuel, food, insurance, payroll and security costs; the ability of Carnival Corporation & plc to implement its shipbuilding programs and brand strategies and to continue to operate and expand its business internationally; Carnival Corporation & plc's future operating cash flow may not be sufficient to fund future obligations and Carnival Corporation & plc may not be able to obtain financing, if necessary, on terms that are favorable or consistent with its expectations; Carnival Corporation & plc's ability to attract and retain qualified shipboard crew and maintain good relations with employee unions; the continuing financial viability of Carnival Corporation & plc's travel agent distribution system and air service providers; Carnival Corporation & plc's decisions to self-insure against various risks or inability to obtain insurance for certain risks; disruptions to Carnival Corporation & plc's information technology systems; continued availability of attractive port destinations; risks associated with the DLC structure, including the uncertainty of its tax status; the impact of pending or threatened litigation; and Carnival Corporation & plc's ability to successfully implement cost reduction plans. 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.



                          CARNIVAL CORPORATION & PLC
                    CONSOLIDATED STATEMENTS OF OPERATIONS

                                       Three Months          Six Months
                                       Ended May 31,        Ended May 31,
                                  -------------------   ------------------
                                      2007       2006      2007      2006
                                   -------    -------   -------   -------
                                    (in millions, except per share data)
    Revenues
         Cruise
             Passenger tickets      $2,181     $2,020    $4,231    $3,930
             Onboard and other         678        600     1,304     1,139
         Other                          41         42        53        56
                                   -------    -------   -------   -------
                                     2,900      2,662     5,588     5,125
                                   -------    -------   -------   -------
    Costs and Expenses
         Operating
              Cruise
                   Commissions,
                    transportation
                    and other          439         405       910       813
                   Onboard and other   109         101       220       198
                   Payroll and related 321         288       632       560
                   Fuel                254         247       474       461
                   Food                181         159       356       311
                   Other ship
                    operating          416         383       802       740
              Other                     43          37        60        53
                                   -------     -------   -------   -------
              Total                  1,763       1,620     3,454     3,136
         Selling and
          administrative               406         354       790       720
         Depreciation and
          amortization                 272         240       532       472
                                   -------     -------   -------   -------
                                     2,441       2,214     4,776     4,328
                                   -------     -------   -------   -------

    Operating Income                   459         448       812       797
                                   -------     -------   -------   -------
    Nonoperating (Expense) Income
         Interest income                17           5        27        12
         Interest expense, net of
          capitalized interest         (94)        (75)     (178)     (151)
         Other expense, net             (1)         (1)       (1)      (16)(1)
                                    -------     -------   -------  -------
                                       (78)        (71)     (152)     (155)
                                    -------     -------   -------  -------

    Income Before Income Taxes         381         377       660       642
    Income Tax Benefit (Expense),
     Net                                 9           3        13       (11)
                                    -------    -------   -------   -------
    Net Income                        $390        $380      $673      $631
                                    =======    =======   =======   =======
    Earnings Per Share
         Basic                       $0.49       $0.47     $0.85     $0.78
                                    =======    =======   =======   =======
         Diluted                     $0.48       $0.46     $0.83     $0.77
                                    =======    =======   =======   =======
    Dividends Per Share              $0.35       $0.25    $0.625     $0.50
                                    =======    =======   =======   =======

    Weighted-Average Shares
     Outstanding - Basic               794         805       794       807
                                   =======     =======   =======   =======
    Weighted-Average Shares
     Outstanding - Diluted             829         840       829       843
                                   =======     =======   =======   =======

   (1) Includes a $10 million expense for a non-cruise investment write-down
       and $5 million for a litigation reserve.



                          CARNIVAL CORPORATION & PLC
                         CONSOLIDATED BALANCE SHEETS

                                               May 31,   November 30,  May 31,
                                                2007        2006        2006
                                              -------     -------     -------
                                              (in millions, except par values)

    ASSETS
    Current Assets
        Cash and cash equivalents               $1,859     $1,163       $570
        Short-term investments                     214         21         13
        Trade and other receivables, net           401        280        405
        Inventories                                282        263        278
        Prepaid expenses and other                 263        268        240
                                               -------    -------    -------
           Total current assets                  3,019      1,995      1,506
                                               -------    -------    -------
    Property and Equipment, Net                 25,019     23,458     22,772

    Goodwill                                     3,331      3,313      3,290

    Trademarks                                   1,328      1,321      1,308

    Other Assets                                   490        465        428
                                               -------    -------    -------
                                               $33,187    $30,552    $29,304
                                               =======    =======    =======

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current Liabilities
        Short-term borrowings                   $1,075       $438       $767
        Current portion of long-term debt        1,457      1,054        217
        Convertible debt subject to
         current put options                     1,170                   218
        Accounts payable                           498        438        411
        Accrued liabilities and other            1,209      1,149        946
        Customer deposits                        3,200      2,336      2,953
                                               -------    -------    -------
             Total current liabilities           8,609      5,415      5,512
                                               -------    -------    -------

    Long-Term Debt                               5,425      6,355      6,045

    Other Long-Term Liabilities and
     Deferred Income                               574        572        652

    Shareholders' Equity
         Common stock of Carnival Corporation;
          $0.01 par value; 1,960 shares
          authorized; 642 shares at 2007, 641
          shares at November 2006 and 640
          shares at May 2006 issued                  6          6          6
         Ordinary shares of Carnival plc;
          $1.66 par value; 226 shares
          authorized; 213 shares at
          2007 and 2006 issued                     354        354        353
         Additional paid-in capital              7,556      7,479      7,418
         Retained earnings                      11,778     11,600     10,369
         Accumulated other comprehensive income    772        661        473
         Treasury stock; 18 shares at 2007
          and November 2006 and 10 shares at
          May 2006 of Carnival Corporation and
          42 shares at 2007 and 2006 of
          Carnival plc, at cost                 (1,887)    (1,890)    (1,524)
                                               -------    -------    -------
              Total shareholders' equity        18,579     18,210     17,095
                                               -------    -------    -------
                                               $33,187    $30,552    $29,304
                                               =======    =======    =======



                          CARNIVAL CORPORATION & PLC
                             SELECTED INFORMATION

                                          Three Months         Six Months
                                          Ended May 31,       Ended May 31,
                                       -----------------   -----------------
                                         2007      2006      2007      2006
                                       -------   -------   -------   -------
                                (in millions, except statistical information)

    STATISTICAL INFORMATION
          Passengers carried
           (in thousands)              1,832       1,708     3,581    3,225(1)
          Occupancy percentage         103.7%      105.4%    103.9%  104.8%(2)
          Fuel cost per metric ton(3)   $333        $354      $317      $336

    OTHER INFORMATION
         Cash from operations         $1,494      $1,272    $2,091    $1,885
         Capital expenditures         $1,493        $726    $2,130    $1,483

    SEGMENT INFORMATION
          Revenues
              Cruise                  $2,859      $2,620    $5,535    $5,069
              Other                       55          54        69        70
              Intersegment elimination   (14)        (12)      (16)      (14)
                                     -------     -------   -------   -------
                                      $2,900      $2,662    $5,588    $5,125
                                     =======     =======   =======   =======
          Operating expenses
              Cruise                  $1,720      $1,583    $3,394    $3,083
              Other                       57          49        76        67
              Intersegment elimination   (14)        (12)      (16)      (14)
                                     -------     -------    -------  -------
                                      $1,763      $1,620     $3,454   $3,136
                                     =======     =======    =======  =======

          Selling and administrative
           expenses
              Cruise                    $398        $343       $774     $698
              Other                        8          11         16       22
                                     -------     -------    -------  -------
                                        $406        $354       $790     $720
                                     =======     =======    =======  =======

          Depreciation and
           amortization
              Cruise                    $263        $232       $514     $456
              Other                        9           8         18       16
                                     -------     -------    -------  -------
                                        $272        $240       $532     $472
                                     =======     =======    =======  =======

          Operating income (loss)
              Cruise                    $478        $462       $853     $832
              Other                      (19)        (14)       (41)     (35)
                                     -------     -------    -------  -------
                                        $459        $448       $812     $797
                                     =======     =======    =======  =======


    (1) Passengers carried in first quarter of 2006 does not include any
        passengers for the three ships chartered to the Military Sealift
        Command ("MSC") in connection with the Hurricane Katrina relief
        efforts.
    (2) Occupancy percentage in first quarter of 2006 includes the three
        ships chartered to the MSC at 100% occupancy.
    (3) Fuel cost per metric ton is calculated by dividing the cost of our
        fuel by the number of metric tons consumed.



                          CARNIVAL CORPORATION & PLC
                         NON-GAAP FINANCIAL MEASURES

Gross and net revenue yields were computed by dividing the gross or net revenues, without rounding, by ALBDs as follows:


                                       Three Months           Six Months
                                       Ended May 31          Ended May 31,
                                  -------------------     ------------------
                                    2007        2006        2007      2006
                                  -------     -------     -------    -------
                                      (in millions, except ALBDs and yields)
    Cruise revenues
        Passenger tickets          $2,181      $2,020      $4,231      $3,930
        Onboard and other             678         600       1,304       1,139
                               ----------  ----------  ----------  ----------
    Gross cruise revenues           2,859       2,620       5,535       5,069
    Less cruise costs
        Commissions,
         transportation and
         other                       (439)       (405)       (910)       (813)
        Onboard and other            (109)       (101)       (220)       (198)
                               ----------  ----------  ----------  ----------
    Net cruise revenues(1)         $2,311      $2,114      $4,405      $4,058
                               ==========  ==========  ==========  ==========

    ALBDs(2)                   13,369,111  12,242,982  26,187,929  24,179,420
                               ==========  ==========  ==========  ==========

    Gross revenue yields(1)       $213.87     $214.00     $211.35     $209.63
                               ==========  ==========  ==========  ==========

    Net revenue yields(1)         $172.90     $172.63     $168.21     $167.78
                               ==========  ==========  ==========  ==========


Gross and net cruise costs per ALBD were computed by dividing the gross or net cruise costs, without rounding, by ALBDs as follows:

                                      Three Months            Six Months
                                      Ended May 31           Ended May 31,
                                  ------------------       ----------------
                                     2007       2006        2007      2006
                                  -------    -------      -------   -------
                              (in millions, except ALBDs and costs per ALBD)

    Cruise operating expenses      $1,720      $1,583      $3,394      $3,083
    Cruise selling and
     administrative expenses          398         343         774         698
                               ----------  ----------  ----------  ----------
    Gross cruise costs              2,118       1,926       4,168       3,781
    Less cruise costs included
     in net cruise revenues
        Commissions,
         transportation and
         other                       (439)       (405)       (910)       (813)
        Onboard and other            (109)       (101)       (220)       (198)
                               ----------  ----------  ----------  ----------
    Net cruise costs(1)            $1,570      $1,420      $3,038      $2,770
                               ==========  ==========  ==========  ==========

    ALBDs(2)                   13,369,111  12,242,982  26,187,929  24,179,420
                               ==========  ==========  ==========  ==========
    Gross cruise costs per
     ALBD(1)                      $158.46     $157.35     $159.17     $156.40
                               ==========  ==========  ==========  ==========
    Net cruise costs per
     ALBD(1)                      $117.50     $115.98     $116.03     $114.54
                               ==========  ==========  ==========  ==========


                     NOTES TO NON-GAAP FINANCIAL MEASURES

    (1) We use net cruise revenues per ALBD ("net revenue yields") and net
        cruise costs per ALBD as significant non-GAAP financial measures of
        our cruise segment financial performance.  We believe that net revenue
        yields are commonly used in the cruise industry to measure a company's
        cruise segment revenue performance. This measure is also used for
        revenue management purposes.  In calculating net revenue yields, we
        use "net cruise revenues" rather than "gross cruise revenues."  We
        believe that net cruise revenues is a more meaningful measure in
        determining revenue yield than gross cruise revenues because it
        reflects the cruise revenues earned by us net of our most significant
        variable costs, which are travel agent commissions, cost of air
        transportation and certain other variable direct costs associated with
        onboard revenues.  Substantially all of our remaining cruise costs are
        largely fixed once our ship capacity levels have been determined,
        except for the impact of changing prices.

        Net cruise costs per ALBD is the most significant measure we use to
        monitor our cruise segment costs rather than gross cruise costs per
        ALBD.  In calculating net cruise costs, we exclude the same variable
        costs that are included in the calculation of net cruise revenues.
        This is done to avoid duplicating these variable costs in these two
        non-GAAP financial measures.

        We have not provided estimates of future gross revenue yields or
        future gross cruise costs per ALBD because the reconciliations of
        forecasted net cruise revenues to forecasted gross cruise revenues or
        forecasted net cruise costs to forecasted cruise operating expenses
        would require us to forecast, with reasonable accuracy, the amount of
        air and other transportation costs that our forecasted cruise
        passengers would elect to purchase from us (the "air/sea mix").  Since
        the forecasting of future air/sea mix involves several significant
        variables that are relatively difficult to forecast and the revenues
        from the sale of air and other transportation approximate the costs of
        providing that transportation, management focuses primarily on
        forecasts of net cruise revenues and costs rather than gross cruise
        revenues and costs.  This does not impact, in any material respect,
        our ability to forecast our future results, as any variation in the
        air/sea mix has no material impact on our forecasted net cruise
        revenues or forecasted net cruise costs. As such, management does not
        believe that this reconciling information would be meaningful.

        We also monitor these two non-GAAP financial measures assuming the
        2007 currency exchange rates have remained constant with the 2006
        comparable period rates, or on a "constant dollar basis," in order to
        remove the impact of changes in exchange rates on our non-U.S. dollar
        cruise operations. We believe that this is a useful measure indicating
        the actual growth of our operations in a fluctuating currency exchange
        rate environment.  On a constant dollar basis, net cruise revenues and
        net cruise costs would be $2.25 billion and $1.53 billion for the
        three months ended May 31, 2007 and $4.29 billion and $2.96 billion
        for the six months ended May 31, 2007, respectively.  On a constant
        dollar basis, gross cruise revenues and gross cruise costs would be
        $2.78 billion and $2.06 billion for the three months ended May 31,
        2007 and $5.38 billion and $4.05 billion for the six months ended May
        31, 2007, respectively. In addition, our non-U.S. dollar cruise
        operations' depreciation and net interest expense were impacted by
        changes in exchange rates for the three and six months ended May 31,
        2007, compared to the prior year's comparable periods.

    (2) Available lower berth days is a standard measure of passenger capacity
        for the period.  It assumes that each cabin we offer for sale
        accommodates two passengers.  ALBDs are computed by multiplying
        passenger capacity by revenue-producing ship operating days in the
        period.

SOURCE Carnival Corporation & plc

CONTACT: Media, Tim Gallagher, US, +1-305-599-2600, ext. 16000, or
Investor Relations, Beth Roberts, US-UK, +1-305-406-4832, both of Carnival
Corporation & plc; or Richard Jacques or Sophie Brand both of Brunswick Group,
44 (0) 20 7404 5959, for Carnival Corporation & plc