Carnival Corp Profits Up Sharply!

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Carnival Corporation & Carnival plc (ticker: CCL, exchange: New York
Stock Exchange) News Release - 9/17/2004

--------------------------------------------------------------------------------
Carnival Corporation & plc Reports Record Third Quarter and Nine Month
Earnings

Quarterly Net Income Tops $1 Billion
MIAMI, Sept. 17 /PRNewswire-FirstCall/ -- Carnival Corporation & plc
(NYSE: CCL; LSE) (NYSE: CUK) reported record net income of $1.03
billion, or $1.23 diluted EPS, on revenues of $3.2 billion for its
third quarter ended August 31, 2004 compared to net income of $734
million, or $0.90 diluted EPS, on revenues of $2.5 billion for the
same quarter in 2003.

Net income for the nine months ended August 31, 2004 was also a record
at $1.56 billion, or $1.90 diluted EPS, on revenues of $7.5 billion,
compared to pro forma net income of $1.01 billion, or $1.25 diluted
EPS, on pro forma revenues of $5.8 billion for the same period in
2003. Reported net income and diluted EPS for the nine months ended
August 31, 2003 were $989 million and $1.42, respectively.

Net revenue yields (net revenue per available lower berth day) for the
third quarter of 2004 increased 10.9 percent compared to net revenue
yields in the prior year, primarily due to higher cruise ticket prices
and on-board revenue 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 8.3 percent
over the same period last year. Gross revenue yields increased 10.1
percent.

Net cruise costs per available lower berth day ("ALBD") for the third
quarter of 2004 were up 3.2 percent compared to costs for the same
period last year, primarily due to the impact of the weak dollar and
higher fuel costs. On a constant dollar basis, net cruise costs per
ALBD increased 0.8 percent from the same period last year largely due
to higher fuel costs. Gross cruise costs per ALBD increased 4.4
percent compared to the prior year.

Commenting on the third quarter results, Carnival Corporation & plc
chairman and CEO Micky Arison said that he continues to be very
pleased with the company's performance. "This record-breaking quarter
is a testament to the success of the merger with P&O Princess Cruises
last year. It is our best quarter ever and the first time we have
earned more than a billion dollars in a single quarter. All of our
major cruise brands in North America and Europe are performing well,
building confidence in our outlook for the combined group for 2005,"
Arison added.

During the third quarter, in a move to optimize asset utilization for
the group, Carnival Cruise Lines' Jubilee was transferred to P&O
Cruises Australia, more than doubling the size of the brand's
operations in the region. The ship will be renamed Pacific Sun and
will be the largest cruise ship based year-round in Australia. Pacific
Sun is undergoing a major refurbishment before beginning seven- to
14-day South Pacific cruises from Sydney.

Also during the quarter, the company began the restructuring of Cunard
Line's North American organization, which will be relocated to Santa
Clarita, Calif., where Princess Cruises is based, by December 2004. As
a result, Cunard will share administrative, finance and IT functions
with Princess in an effort to streamline operations and maximize
efficiencies. This follows a similar restructuring in the United
Kingdom, where Cunard's UK operations were combined with those of the
other Carnival Corporation & plc UK brands. As previously announced,
the relocation is expected to reduce future overhead costs by
approximately $20 million on an annual basis.

Comments on Full Year and Fourth Quarter 2004

Looking forward, Arison said that he is equally pleased with the
outlook for the full year 2004. "We are on track to achieve a record
increase in revenue yields this year of approximately 9 percent, while
absorbing an extraordinarily high 17 percent capacity increase,"
Arison added.

For the fourth quarter of 2004, advance booking levels are higher
versus prior year's levels on a capacity adjusted basis, with pricing
also ahead of last year. As a result, the company expects that net
revenue yields for the fourth quarter of 2004 will increase
approximately 7 to 9 percent (5 to 7 percent on a constant dollar
basis), compared to last year's fourth quarter, despite the negative
effect of Hurricane Frances. Net cruise costs per ALBD in the fourth
quarter of 2004 are expected to be up 6 to 8 percent (4 to 6 percent
on a constant dollar basis), compared to 2003 primarily due to higher
fuel costs, costs associated with the Cunard reorganization and costs
related to the hurricane. Based on these estimates, the company
expects earnings per share for the fourth quarter of 2004 to be in the
range of $0.30 to $0.32. The company's guidance includes the estimated
impact of Hurricane Frances of between $0.03 to $0.04 per share, as
well as the cost of the aforementioned Cunard relocation of between
$0.01 to $0.02 per share, both of which will primarily impact the 2004
fourth quarter. The company's current guidance is based on an exchange
rate of $1.23 to the euro and $1.82 to sterling.

The company has one ship scheduled to enter service during the fourth
quarter of 2004. Costa Cruises' 2,702-passenger Costa Magica, which
will be one of the largest European passenger vessels, will operate a
series of European cruises beginning November 10, 2004.

The company has scheduled a conference call with analysts at 10 a.m.
EDT (15.00 London time) today to discuss its 2004 third quarter
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 and P&O Princess plc entered into a dual listed
company ("DLC") structure on April 17, 2003, which effectively made
Carnival Corporation and P&O Princess plc a single economic entity.
Also on that date, P&O Princess plc changed its name to Carnival plc.
For reporting purposes, Carnival Corporation has accounted for the DLC
transaction as an acquisition of Carnival plc as of April 17, 2003.

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,
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 128,000
lower berths with eight new ships scheduled for delivery between
November 2004 and December 2006. 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 27E 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 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 August 31, Nine Months Ended August
31,
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 $2,444 $1,863 $5,663 $4,364
$3,671
Onboard and
other 579 467 1,555 1,183
1,003
Other 222 194 267 233
227
3,245 2,524 7,485 5,780
4,901
Costs and Expenses
Operating
Cruise
Commissions,
transpor-
tation
and other 467 361 1,227 954
748
Onboard and
other 92 83 270 205
155
Payroll and
related 253 218 739 616
520
Food 149 118 412 328
276
Other ship
operating 468 369 1,285 1,056
864
Other 140 129 183 170
162
Total 1,569 1,278 4,116 3,329
2,725
Selling and
administra-
tive 306 261 944 820
650
Depreciation and
amortization 210 176 599 479
417
2,085 1,715 5,659 4,628
3,792
Operating
Income 1,160 809 1,826 1,152
1,109

Nonoperating
(Expense)
Income
Interest income 3 7 12 22
20
Interest expense,
net of
capitalized
interest (76) (58) (212) (159)
(129)
Other (expense)
income, net (2) 5 (9) 12
9
(75) (46) (209) (125)
(100)

Income Before
Income Taxes 1,085 763 1,617 1,027
1,009

Income Tax
Expense, Net (60) (29) (56) (17)
(20)

Net Income $1,025 $734 $1,561 $1,010
$989

Earnings Per
Share
Basic $1.28 $0.92 $1.95 $1.27
$1.43
Diluted $1.23 $0.90 $1.90 $1.25
$1.42

Dividends Per
Share $0.125 $0.105 $0.375 $0.315
$0.315

Weighted-
Average Shares
Outstanding -
Basic 803,083 797,015 801,832 795,986
690,949
Weighted-
Average Shares
Outstanding -
Diluted 840,230 818,191 833,241 805,615
698,696

(1) The reported results for the three and nine months 2004 and
the three
months 2003 included Carnival Corporation and Carnival plc for
the
entire period. The 2003 nine month reported results only
included
Carnival plc since April 17, 2003, when the 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.


CARNIVAL CORPORATION & PLC
SELECTED STATISTICAL AND SEGMENT INFORMATION

Three Months Ended August 31, Nine Months Ended
August 31,
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 1,849,447 1,595,694 4,762,315 4,056,383
3,671,480
Available
lower berth
days (4) 11,684,117 9,915,347 32,867,217 27,625,601
23,380,677
Occupancy
percentage 110.2% 109.8% 105.2% 103.1%
104.4%

SEGMENT
INFORMATION
Revenues
Cruise $3,023 $2,330 $7,218 $5,547
$4,674
Other 301 257 355 309
303
Intersegment
elimination (79) (63) (88) (76)
(76)
$3,245 $2,524 $7,485 $5,780
$4,901
Operating
expenses
Cruise $1,429 $1,149 $3,933 $3,159
$2,563
Other 219 192 271 246
238
Intersegment
elimination (79) (63) (88) (76)
(76)
$1,569 $1,278 $4,116 $3,329
$2,725

Selling and
administrative
expenses
Cruise $292 $249 $902 $783
$622
Other 14 12 42 37
28
$306 $261 $944 $820
$650

Operating income
Cruise $1,098 $764 $1,800 $1,143
$1,085
Other 62 45 26 9
24
$1,160 $809 $1,826 $1,152
$1,109

(1) The reported information for the three and nine months 2004
and the
three months 2003 included Carnival Corporation and Carnival
plc for
the entire period. The 2003 nine 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 August 31, Nine Months Ended August
31,
Reported Reported Reported Pro Forma
Reported
2004 2003 2004 2003 (1)
2003
(in millions, except ALBDs and yields)

Cruise revenues
Passenger
tickets $2,444 $1,863 $5,663 $4,364
$3,671
Onboard and
other 579 467 1,555 1,183
1,003
Gross cruise
revenues 3,023 2,330 7,218 5,547
4,674
Less cruise costs
Commissions,
transportation
and other (467) (361) (1,227) (954)
(748)
Onboard and
other (92) (83) (270) (205)
(155)
Net cruise
revenues $2,464 $1,886 $5,721 $4,388
$3,771

ALBDs 11,684,117 9,915,347 32,867,217 27,625,601
23,380,677

Gross revenue
yields (2) $258.75 $234.95 $219.61 $200.79
$199.92

Net revenue
yields (2) $210.87 $190.20 $174.05 $158.85
$161.32

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 August 31, Nine Months Ended August
31,
Reported Reported Reported Pro Forma
Reported
2004 2003 2004 2003 (1)
2003
(in millions, except ALBDs and costs per ALBD)

Cruise operating
expenses $1,429 $1,149 $3,933 $3,159
$2,563
Cruise selling
and adminis-
trative
expenses 292 249 902 783
622
Gross cruise
costs 1,721 1,398 4,835 3,942
3,185
Less cruise
costs included
in net cruise
revenues
Commissions,
transportation
and other (467) (361) (1,227) (954)
(748)
Onboard and
other (92) (83) (270) (205)
(155)
Net cruise
costs $1,162 $954 $3,338 $2,783
$2,282

ALBDs 11,684,117 9,915,347 32,867,217 27,625,601
23,380,677

Gross cruise
costs per
ALBD (2) $147.25 $141.04 $147.12 $142.66
$136.22

Net cruise
costs per
ALBD (2) $99.36 $96.28 $101.56 $100.72
$97.62


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 nine months ended August 31, 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 $12 million of depreciation expense and $3 million of
interest
expense for the nine months ended August 31, 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.

SOURCE Carnival Corporation & plc

CONTACT:
US, Tim Gallagher, Carnival Corporation & plc
+1-305-599-2600, ext. 16000
or
UK
Sophie Fitton
or
Sarah Tovey, both of Brunswick
+44-20-7404-5959
for Carnival Corporation & plc
or
Investor Relations, US and UK
Beth Roberts
both of Carnival Corporation & plc
+1-305-406-4832
Web site: http://www.carnivalcorp.com
http://www.carnivalplc.com
(CCL CUK)



"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: Statements in this press release regarding Carnival
Corporation & Carnival plc's business which are not historical facts
are "forward-looking statements" that involve risks and uncertainties.
For a discussion of such risks and uncertainties, which could cause
actual results to differ from those contained in the forward-looking
statements, see "Risk Factors" in the Company's Annual Report or Form
10-K for the most recently ended fiscal year.