1) Strong Financial Performance
- Record second quarter net income of $569 million, up over 20% YoY despite a nearly 30% increase in fuel prices.
- Outperformed March guidance by $100 million, driven by strong commercial execution and cost efficiency.
- Customer deposits reached an all-time high of $9 billion.
- Yields increased by 2.2% YoY, marking the 12th consecutive quarter of record yields.

2) Operational Challenges and Cost Management
- Geopolitical volatility and high fuel prices impacted operations, particularly in European deployments.
- Despite these challenges, unit operating costs remained flat, outperforming guidance by 2.5 percentage points.
- Fuel efficiency improved by over 5%, building on last year's gains.
- The company anticipates that the current moderation in performance is transitory, with expectations for normalization as conditions improve.

3) Strategic Investments and Fleet Modernization
- Continued disciplined fleet investments with orders for three new Princess Cruises ships scheduled for delivery in 2035, 2038, and 2039.
- Focus on modernization programs, including the Holland America Evolution program, to enhance guest experiences and operational efficiencies.
- Investments in exclusive destinations like Celebration Key and RelaxAway Half Moon Cay are expected to drive demand and enhance guest experiences.

4) Future Guidance and Market Outlook
- Full-year EPS guidance raised to $2.22, reflecting the impact of share repurchases.
- Yield growth for 2026 revised to approximately 2.25%, with expectations for record yields in the second half of the year.
- Strong bookings for 2027 are already ahead of last year, particularly in European deployments, indicating confidence in long-term demand.
- The company plans to return $1.3 billion to shareholders through dividends and share repurchases, while continuing to invest in growth opportunities.

5) Conclusion and Missing Information
- The call provided a comprehensive overview of the company's performance, strategic initiatives, and outlook. However, specific details regarding the impact of the loyalty program on future yields and the exact split of 2027 bookings between first and second half were not disclosed.

Bottom line: Carnival Corporation demonstrated robust financial performance in Q2 2026, navigating operational challenges effectively while positioning itself for future growth through strategic investments and strong booking trends. The company remains committed to delivering long-term value for shareholders amidst a complex geopolitical landscape.