Carnival Corp. is expected to post a third-quarter loss as its cruise line struggles to keep up with its own sales growth.
The cruise operator reported a third quarter loss of $1.24 billion, or $2.17 per share, on revenue of $3.1 billion.
Carnival also reported a fourth-quarter net loss of about $2 million, or 46 cents per share.
Carnival stock closed down 5 cents at $9.29.
Carnival shares have fallen 14 percent since mid-April.
Carnival Chief Executive Officer and Chairman of the Board Michael Eisner has been under pressure to improve Carnival’s financial health, and he is seeking to do so by cutting costs, restructuring debt and reducing expenses.
The company’s cruise line revenue was down 9 percent to $3 billion last year from $3 trillion.
Carnival has been struggling to keep pace with passenger growth in the U.S., particularly as people get more adventurous on boats and boats cruise in the middle of the night.
Carnival is in the midst of a $1 billion deal with China’s Jumeirah Tourism Corp. to allow more people to travel on the ships.
Carnival’s stock has dropped about 11 percent since the beginning of the year, with investors betting that a stronger-than-expected second quarter would hurt the company’s earnings.
Carnival and other cruise lines have struggled to keep the boats running because of increased pollution in China, and they face competition from new and smaller operators.
Carnival did not immediately respond to a request for comment.
Amazon has been buying up cruise lines like Carnival in recent months, and the online retail giant is now buying more cruise lines than it bought in 2016.
The Seattle-based online retailer has announced plans to buy Cruise Lines International Inc. for about $3bn.
In a statement to investors, Amazon said the deal would “increase Amazon’s ability to bring its world-class cruise fleet to market and to compete with our own shipyard, Carnival Cruises.”