Carnival Quarter & Full Year Earnings!

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Carnival Corporation & plc Reports Fourth Quarter and Full Year
Earnings

MIAMI, Dec. 16
Carnival Corporation & plc (NYSE: CCL; LSE) (NYSE: CUK) reported net
income of $294 million, or $0.36 diluted EPS, on revenues of $2.24
billion for its fourth quarter ended November 30, 2004. Net income for
the fourth quarter of 2003 was $205 million, or $0.26 diluted EPS, on
revenues of $1.82 billion. As previously announced, earnings per share
for the 2004 fourth quarter were reduced by approximately $0.04 per
share as a result of disruptions to cruises caused by the
unprecedented level of hurricane activity this fall.

Net income for the year ended November 30, 2004 was $1.85 billion
($2.24 diluted EPS) on revenues of $9.73 billion, compared to pro
forma net income of $1.21 billion ($1.49 diluted EPS) on pro forma
revenues of $7.60 billion for the same period in 2003. Reported net
income and diluted EPS for the twelve months ended November 30, 2003
were $1.19 billion and $1.63, respectively.

For the fourth quarter of 2004, the company elected to retroactively
early adopt a new accounting pronouncement that requires the company
to treat all of its contingently convertible notes as outstanding for
its diluted earnings per share computations. Accordingly, the company
has decreased its previously reported and pro forma full year 2003
diluted earnings per share by $0.03. Also, as a result of this change,
the company's full year 2004 diluted earnings per share is $0.02 less
than previously expected.

Net revenue yields (net revenue per available lower berth day) for the
fourth quarter of 2004 increased 10.1 percent compared to net revenue
yields in the prior year, primarily due to higher cruise ticket prices
and onboard revenues and, to a lesser extent, the weak U.S. dollar
relative to the euro and sterling. Net revenue yields as measured on a
local currency basis ("constant dollar basis") increased 7.5 percent
over the same period last year. Gross revenue yields increased 10.3
percent.

For the 2004 year, net revenue yields increased 9.8 percent (gross
revenue yields increased 9.7 percent), the largest single increase in
the company's history.

Net cruise costs per available lower berth day ("ALBD") for the fourth
quarter of 2004 were up 9.1 percent compared to costs for the same
period last year. On a constant dollar basis, net cruise costs per
ALBD increased 6.5 percent from the same period last year primarily
due to significantly higher fuel costs, costs associated with the
Cunard reorganization and costs related to the hurricanes. Gross
cruise costs per ALBD increased 9.6 percent compared to the prior
year.

Carnival Corporation & plc Chairman and CEO Micky Arison said that he
was pleased with the company's performance during the quarter.
"Despite an unusually severe Atlantic hurricane season that disrupted
several cruises and adversely impacted earnings, we still turned in an
excellent fourth quarter to help propel us to the best year in the
history of the company. We also laid the groundwork for future
expansion over the next five years, ordering ships for several
different brands operating in all the major regions of the global
marketplace, positioning the company well for continued growth," he
said.

During the 2004 fourth quarter, the company ordered six new ships,
which are expected to be delivered between 2007 and 2009. The
newbuilds include two 68,500-ton ships for AIDA Cruises in Germany, a
110,000-ton "Conquest-class" ship for Carnival Cruise Lines, and a
116,000-ton "Caribbean Princess-class" ship for Princess Cruises, as
well as a 110,000-ton and a 116,000-ton vessel, which are likely to
operate under the company's European brands.

Even with these future capital commitments, because of the expected
strong cash flow in coming years, during the 2004 fourth quarter the
company's board of directors authorized the repurchase of up to $1
billion of Carnival Corporation and Carnival plc shares and increased
its quarterly dividend by 20 percent to $0.15 per share.

Also during the fourth quarter, Costa Cruises took delivery of the
2,702- passenger Costa Magica, which is one of the largest European
passenger vessels. The Costa Magica began operating a series of
European cruises this winter out of Italy.

Arison pointed out that including the introduction of the Carnival
Valor, currently underway, the company has introduced a record eight
new cruise ships over the last twelve months. Among the ship
introductions in the last year was Cunard Line's 150,000-ton Queen
Mary 2, the largest and most widely recognized passenger vessel ever
constructed. The other ships introduced include Princess Cruises'
2,674-passenger Diamond Princess and Sapphire Princess, and
3,100-passenger Caribbean Princess; Carnival Cruise Lines'
2,124-passenger Carnival Miracle; Holland America Line's
1,848-passenger Westerdam; and the Costa Magica.

"In the first full year since the historic merger of Carnival
Corporation and P&O Princess, the performance of the new combined
company has been superb," Arison said. "I want to acknowledge and
thank our 70,000 employees, both shipboard and shoreside, for their
fine performance and contribution to this record year, characterized
by record revenues, yield increases, net income and earnings per
share. After three extremely challenging years, 2004 has emerged as
the best in the history of the company and is a testament to the
resilience of the cruise industry and the continuing appeal of cruise
vacations," he said.

2005 Outlook

Looking forward to 2005, Arison said the company was very optimistic
about its prospects next year. "The strength of our 2005 advance
bookings, combined with the continued strength in overall leisure
travel, builds confidence that 2005 will be another very good year,"
Arison noted. "We are entering 2005 with a significant head start over
2004. Even with an expected nine percent capacity increase in 2005, we
have less inventory to sell now than at this time last year. Also, the
booking curve has lengthened substantially from where it was last year
at this time, which provides the opportunity to execute our pricing
strategies to maximize revenue yields," he added.

For the year 2005, advance booking levels are significantly ahead of
the prior year's levels on a capacity adjusted basis, with pricing
slightly higher than last year. Assuming a continuing strong demand
for travel, the company expects that net revenue yields for 2005 will
increase approximately 3 to 5 percent (2 to 4 percent on a constant
dollar basis), compared to last year. Net cruise costs per ALBD for
2005 are expected to be flat to up 2 percent (down 1 percent to up 1
percent on a constant dollar basis), compared to 2004. Based on
current internal forecasts, the company is comfortable with estimates
of $2.70 per share, including the additional dilution from the new
accounting pronouncement relating to the computation of earnings per
share for convertible notes. The company's guidance is based on flat
fuel pricing compared to 2004, which is in line with the forward curve
for bunker fuel, and an exchange rate of $1.30 to the euro and $1.86
to the sterling.

For the first quarter of 2005, the company expects net revenue yields
to increase 5 to 7 percent (4 to 6 percent on a constant dollar basis)
compared to last year. Net cruise costs per ALBD are expected to be
flat to up 1 percent, (flat to down 1 percent on a constant dollar
basis) compared to last year. Based on these estimates, the company
expects diluted earnings per share for the first quarter of 2005 to be
in the range of $0.38 to $0.40.

The company has two more ships scheduled for delivery in fiscal 2005 -
P&O Cruises' 1,968-passenger Arcadia in April 2005 and Carnival
Valor's sister ship, the 2,974-passenger Carnival Liberty, in July
2005.

Carnival has scheduled a conference call with analysts at 10 a.m. EST
(15.00 London time) today to discuss its 2004 fourth quarter and full
year earnings. This call can be listened to live, and additional
information can be obtained, via Carnival Corporation & plc's Web
sites at http://www.carnivalcorp.com and http://www.carnivalplc.com.

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 77 ships totaling more than 132,000
lower berths with 12 new ships scheduled for delivery between April
2005 and April 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.

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, plans, outlook, 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 tax 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 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; 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 and
interest rates and fuel, food, payroll, insurance and security costs;
changes in the tax, environmental, health, safety, security and other
regulatory regimes under which Carnival Corporation & plc operates;
continued availability of attractive port destinations; the ability to
successfully implement cost improvement plans and to integrate
business acquisitions; continuing financial viability of Carnival
Corporation & plc's travel agent distribution system and air service
providers; and unusual weather patterns or natural disasters.

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 Ended Twelve Months
November 30, Ended November 30,
Reported Reported Reported Pro Forma
Reported
2004(1) 2003(1)(3) 2004(1) 2003(2)(3)
2003(1)(3)
(in millions, except per share data)


Revenues
Cruise
Passenger
tickets $1,694 $1,368 $7,357 $5,732
$5,039
Onboard and
other 516 417 2,070 1,600
1,420
Other 33 32 300 264
259
2,243 1,817 9,727 7,596
6,718
Costs and Expenses
Operating
Cruise
Commissions,
transportation
and other 345 274 1,572 1,227
1,021
Onboard and
other 89 74 359 279
229
Payroll and
related 265 224 1,003 841
744
Food 138 117 550 447
393
Other ship
operating 478 373 1,763 1,428
1,237
Other 27 27 210 198
190
Total 1,342 1,089 5,457 4,420
3,814
Selling and
administrative 341 286 1,285 1,103
936
Depreciation and
amortization 213 168 812 653
585
1,896 1,543 7,554 6,176
5,335
Operating Income 347 274 2,173 1,420
1,383

Nonoperating
(Expense) Income
Interest income 5 7 17 29
27
Interest expense,
net of capitalized
interest (72) (67) (284) (225)
(195)
Other income
(expense), net 4 (5) 11
8
(63) (60) (272) (185)
(160)

Income Before
Income Taxes 284 214 1,901 1,235
1,223

Income Tax Benefit
(Expense), Net 10 (9) (47) (25)
(29)

Net Income $294 $205 $ 1,854 $ 1,210
$1,194

Earnings Per Share
Basic $0.37 $0.26 $2.31 $1.52
$1.66
Diluted $0.36 $0.26 $2.24 $1.49(4)
$1.63(4)

Dividends Per
Share $0.15 $0.125 $0.525 $0.44
$0.44

Weighted-Average
Shares
Outstanding -
Basic 803.8 798.1 802.3 796.5
717.7
Weighted-Average
Shares
Outstanding -
Diluted 852.5 817.2 850.5 839.4
759.2


(1) The reported results for the 2004 three and twelve months and
the 2003
three months included Carnival Corporation and Carnival plc for
the
entire periods. The 2003 twelve month reported results only
included
Carnival plc since April 17, 2003, the date when the dual
listed
company ("DLC") transaction was completed.
(2) See note (1) to the Carnival Corporation & plc "Reported and
Pro Forma
GAAP Reconciling Information."
(3) Reclassifications have been made to certain 2003 amounts to
conform to
the current period presentation.
(4) The 2003 twelve month diluted earnings per share have been
restated
and reduced by $0.03 to reflect the change in how the company
treats
convertible debt with contingent conversion features in its
earnings
per share computations in accordance with Emerging Issues Task
Force
Statement 04-08.


CARNIVAL CORPORATION & PLC
SELECTED STATISTICAL AND SEGMENT INFORMATION

Three Months Ended Twelve Months
November 30, Ended November 30,
Reported Reported Reported Pro Forma
Reported
2004(1) 2003(1)(3) 2004(1) 2003(2)(3)
2003(1)(3)
(in millions, except statistical
information)


STATISTICAL INFORMATION
Passengers
carried 1,543,853 1,366,073 6,306,168 5,422,456
5,037,553
Available
lower berth
days(4) 11,141,844 9,929,108 44,009,061 37,554,709
33,309,785
Occupancy
percentage 102.5% 101.1% 104.5% 102.6%
103.4%

SEGMENT INFORMATION
Revenues
Cruise $2,210 $1,785 $9,427 $7,332
$6,459
Other 43 42 398 350
345
Intersegment
elimination (10) (10) (98) (86)
(86)
$2,243 $1,817 $9,727 $7,596
$6,718
Operating expenses
Cruise $1,315 $1,062 $5,247 $4,222
$3,624
Other 37 37 308 284
276
Intersegment
elimination (10) (10) (98) (86)
(86)
$1,342 $1,089 $5,457 $4,420
$3,814

Selling and
administrative
expenses
Cruise $329 $274 $1,231 $1,054
$896
Other 12 12 54 49
40
$341 $286 $1,285 $1,103
$936

Operating
income (loss)
Cruise $358 $286 $2,158 $1,422
$1,371
Other (11) (12) 15 (2)
12
$347 $274 $2,173 $1,420
$1,383


(1) The reported information for the 2004 three and twelve months
and the
2003 three months included Carnival Corporation and Carnival
plc for
the entire periods. The 2003 twelve month reported results
only
included Carnival plc since April 17, 2003.
(2) See note (1) to the Carnival Corporation & plc "Reported and
Pro Forma
GAAP Reconciling Information."
(3) Reclassifications have been made to certain 2003 amounts to
conform to
the current period presentation.
(4) Available lower berth days ("ALBDs") is the total passenger
capacity
for the period, assuming two passengers per cabin, that we
offer for
sale, which is computed by multiplying passenger capacity by
revenue-
producing ship operating days in the period.



CARNIVAL CORPORATION & PLC
REPORTED AND PRO FORMA GAAP RECONCILING INFORMATION


We use net revenue yields to measure our cruise segment revenue
performance. Gross and net revenue yields were computed by dividing
the gross or net cruise revenues, without rounding, by ALBDs as
follows:

Three Months Ended Twelve Months
November 30, Ended November 30,
Reported Reported Reported Pro Forma
Reported
2004 2003 2004 2003(1)
2003
(in millions, except ALBDs and yields)

Cruise revenues
Passenger
tickets $1,694 $1,368 $7,357 $5,732
$5,039
Onboard and
other 516 417 2,070 1,600
1,420
Gross cruise
revenues 2,210 1,785 9,427 7,332
6,459
Less cruise
costs
Commissions,
transportation
and other (345) (274) (1,572) (1,227)
(1,021)
Onboard and
other (89) (74) (359) (279)
(229)
Net cruise
revenues $1,776 $1,437 $7,496 $5,826
$5,209

ALBDs 11,141,844 9,929,108 44,009,061 37,554,709
33,309,785

Gross
revenue
yields(2) $ 198.28 $179.77 $ 214.21 $ 195.23
$193.91

Net revenue
yields(2) $ 159.31 $144.72 $ 170.32 $ 155.11
$156.38



We use net cruise costs per ALBD to monitor our ability to control our
cruise segment costs. 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 Ended Twelve Months
November 30, Ended November 30,
Reported Reported Reported Pro Forma
Reported
2004 2003 2004 2003(1)
2003
(in millions, except ALBDs and costs per ALBD)


Cruise
operating
expenses $1,315 $ 1,062 $5,247 $4,222
$3,624
Cruise selling
and
administrative
expenses 329 274 1,231 1,054
896
Gross cruise
costs 1,644 1,336 6,478 5,276
4,520
Less cruise
costs included
in net cruise
revenues
Commissions,
transportation
and other (345) (274) (1,572) (1,227)
(1,021)
Onboard and
other (89) (74) (359) (279)
(229)
Net cruise
costs $1,210 $988 $4,547 $3,770
$3,270

ALBDs 11,141,844 9,929,108 44,009,061 37,554,709
33,309,785

Gross cruise
costs per
ALBD(2) $ 147.44 $134.48 $ 147.20 $140.50
$135.69

Net cruise
costs per
ALBD(2) $ 108.47 $99.43 $ 103.31 $100.38
$98.16



NOTES TO REPORTED AND PRO FORMA GAAP RECONCILING INFORMATION

(1) The pro forma information gives pro forma effect to the DLC
transaction between Carnival Corporation and Carnival plc,
which was
completed on April 17, 2003, as if the DLC transaction had
occurred on
December 1, 2002. Management has prepared the pro forma
information
based upon the companies' reported financial information and,
accordingly, the above information should be read in
conjunction with
the companies' financial statements, as well as pro forma
information
included in the companies' joint Current Report on Form 8-K
filed on
March 5, 2004.

The DLC transaction has been accounted for as an acquisition of
Carnival plc by Carnival Corporation, using the purchase method
of
accounting. The Carnival plc accounting policies have been
conformed
to Carnival Corporation's policies. Carnival plc's reporting
period
has been changed to the Carnival Corporation reporting period
and the
pro forma information covers the same periods of time for both
companies.

The pro forma information has not been adjusted to reflect any
net
transaction benefits from the DLC transaction. In addition, it
excludes $51 million for the year ended November 30, 2003 of
nonrecurring DLC transaction costs, which were expensed by
Carnival
plc prior to April 17, 2003. The exclusion of these
nonrecurring
costs is consistent with the requirements of Article 11 of
Regulation
S-X. The 2003 pro forma information was computed by adding
Carnival
plc's 2003 results, adjusted for acquisition adjustments
(reductions
of $16 million of depreciation expense and $3 million of
interest
expense for the year ended November 30, 2003) to the 2003
Carnival
Corporation reported results. Finally, the pro forma
information does
not purport to represent what the results of operations
actually could
have been if the DLC transaction had occurred on December 1,
2002 or
what those results will be for any future periods.

(2) In the cruise industry, most companies, including Carnival
Corporation
& plc, generally consider net cruise revenues, which is used in
the
computation of net revenue yields, to be a commonly used
indicator of
revenue performance rather than gross cruise revenues. Also,
net
cruise costs, which is used in the computation of net cruise
costs per
ALBD, is considered to be the most significant measure used to
monitor
our ability to control costs rather than gross cruise costs.

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.