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Carnival Corporation & Plc Revises 2006 Outlook

MIAMI, May 16, 2006 /PRNewswire-FirstCall/ -- Carnival Corporation & plc(NYSE/LSE: CCL; NYSE: CUK) announced today that it is revising 2006 earningsguidance based on several items, including lower revenue yields, higher fuelcosts and a change in accounting.

Earnings for fiscal 2006 are now expected to be in the range of $2.65 to$2.75 per share, roughly in line with 2005 earnings of $2.70 per share. Thecompany expects earnings for the second quarter of 2006 to be in the range of$0.43 to $0.45 per share.

     Details of the revisions to the company's guidance are as follows:    * The company has reduced its outlook for net revenue yield improvement on      a local currency basis ("constant dollar basis") due to further weakness      in bookings, principally for sailings in the Caribbean during the second      half of 2006. Net revenue yields (net revenue per available lower berth      day) for the year in constant dollars are now expected to increase 1 to      2% versus the company's previous guidance of an increase of      approximately 2 to 3%.  This will reduce earnings by approximately $0.10      per share. Because of the strengthening of the euro and sterling      relative to the U.S. dollar since the time of its last guidance in      March, the company continues to expect full year 2006 net revenue yields      in current dollars to increase approximately 1 to 2%.    * Since the company's previous guidance, fuel costs have increased      significantly and are expected to further impact earnings per share for      the year 2006 by approximately $0.07. The cumulative impact of higher      fuel prices for full year 2006 is expected to be $265 million, or $0.32      per share, compared to the prior year.  The company's guidance is based      on the forward curve for fuel for the remainder of the year of      approximately $372 per metric ton.    * The company's guidance for the remainder of the year is based on      currency exchange rates of $1.27 to the euro and $1.86 to sterling,      which benefits guidance for the year by $0.04 per share compared to      previous guidance.    * Commencing with the first quarter of 2006, the company will change its      accounting policy for dry-dock costs from amortizing them over the time      between dry-docks, generally two to three years, to expensing dry-dock      costs as incurred. This change in accounting principle will reduce full      year 2006 earnings per share by approximately $0.08, including $0.04 per      share in the company's previously released 2006 first quarter, and $0.04      per share over the balance of the year.

With regard to the revised outlook, Carnival Corporation & plc Chairmanand CEO Micky Arison commented, "Although we are disappointed having to lowerour guidance for the year, we believe the fundamentals of our business remainsound and our long-term strategies position us well to grow our business in2007 and beyond."

Carnival Corporation & plc is the largest cruise vacation group in theworld, with a portfolio of 12 cruise brands in North America, Europe andAustralia, comprised of Carnival Cruise Lines, Holland America Line, PrincessCruises, Seabourn Cruise Line, Windstar Cruises, AIDA Cruises, Costa Cruises,Cunard Line, Ocean Village, P&O Cruises, Swan Hellenic, and P&O CruisesAustralia.

Together, these brands operate 80 ships totaling approximately 139,000lower berths with 15 new ships scheduled to enter service between June 2006and fall 2009. Carnival Corporation & plc also operates the leading tourcompanies in Alaska and the Canadian Yukon, Holland America Tours and PrincessTours. Traded on both the New York and London Stock Exchanges, CarnivalCorporation & plc is the only group in the world to be included in both theS&P 500 and the FTSE 100 indices.

The company has scheduled a call with analysts for today at 10 a.m. EST(15.00 London time). This call can be listened to live, and additionalinformation can be obtained, via Carnival Corporation & plc's website at# or # .

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 withrespect to Carnival Corporation & plc, including some statements concerningfuture results, outlook, plans, goals and other events which have not yetoccurred. These statements are intended to qualify for the safe harbors fromliability provided by Section 27A of the Securities Act of 1933 and Section21E 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 statementsinvolve risks and uncertainties, there are many factors that could causeCarnival Corporation & plc's actual results, performance or achievements todiffer materially from those expressed or implied in this earnings release.Forward-looking statements include those statements which may impact theforecasting of earnings per share, net revenue yields, booking levels,pricing, occupancy, operating, financing and/or tax costs, fuel costs, costsper available lower berth day, estimates of ship depreciable lives andresidual values, outlook or business prospects. These factors include, but arenot limited to, the following: risks associated with the DLC structure,including the uncertainty of its tax status; general economic and businessconditions, which may impact levels of disposable income of consumers and thenet revenue yields for cruise brands of Carnival Corporation & plc; conditionsin the cruise and land-based vacation industries, including competition fromother cruise ship operators and providers of other vacation alternatives andincreases in capacity offered by cruise ship and land-based vacationalternatives; risks associated with operating internationally; theimplementation of U.S. regulations requiring U.S. citizens to obtain passportsfor travel to or from additional foreign destinations; the internationalpolitical and economic climate, armed conflicts, terrorist attacks and threatsthereof, availability of air service, other world events and adversepublicity, and their impact on the demand for cruises; accidents and otherincidents affecting the health, safety, security and vacation satisfaction ofpassengers, including machinery and equipment failures, which could cause thealteration of itineraries or cancellation of a cruise or a series of cruisesand the impact of the spread of contagious diseases; changing consumerpreferences, which may, among other things, adversely impact the demand forcruises; the ability of Carnival Corporation & plc to implement itsshipbuilding programs and brand strategies and to continue to expand itsbusiness worldwide; the ability of Carnival Corporation & plc to attract andretain qualified shipboard crew and maintain good relations with employeeunions; the ability to obtain financing on terms that are favorable orconsistent with Carnival Corporation & plc's expectations; the impact ofchanges in operating and financing costs, including changes in foreigncurrency exchange rates and interest rates and fuel, food, payroll, insuranceand security costs; the impact of pending or threatened litigation; changes inthe environmental, health, safety, security, tax and other regulatory regimesunder which Carnival Corporation & plc operates; continued availability ofattractive port destinations; the ability to successfully implement costreduction plans; continuing financial viability of Carnival Corporation &plc's travel agent distribution system and air service providers; and unusualweather patterns or natural disasters, such as hurricanes and earthquakes.

Forward-looking statements should not be relied upon as a prediction ofactual results. Subject to any continuing obligations under applicable law orany relevant listing rules, Carnival Corporation & plc expressly disclaims anyobligation to disseminate, after the date of this release, any updates orrevisions to any such forward-looking statements to reflect any change inexpectations or events, conditions or circumstances on which any suchstatements are based.

SOURCE Carnival Corporation

CONTACT: Media, US, Tim Gallagher of Carnival Corporation & plc,
+1-305-599-2600, ext. 16000; UK, Sophie Fitton or Sarah Lindgreen, both of the
Brunswick Group for Carnival Corporation & plc, +44-20-7404-5959; Investor
Relations, US and UK, Beth Roberts of Carnival Corporation & plc,
+1-305-406-4832

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