Disney Cruise Line Revenue Rises 20% as Expansion Costs Hit Profit

Disney Cruise Line’s UK operating company posted $3.005 billion in fiscal 2025 revenue, up 20% year over year, while profit fell to $302.7 million as the line absorbed expansion costs ahead of new ships entering service. The figures were disclosed in Magical Cruise Company, Limited’s annual report for the year ended Sept. 27, 2025, which was made public this week.

The filing gives a more detailed cruise-level view than The Walt Disney Company’s consolidated Experiences reporting, where Disney Cruise Line is generally grouped with other businesses. Magical Cruise Company, a UK-registered private company incorporated in 1996 and trading as Disney Cruise Line, files separate accounts, though the report states that its financials do not include every entity operating under the Disney Cruise Line brand.

Revenue rose while expansion costs reduced profit

Revenue increased from $2.498 billion in fiscal 2024, with directors tying the gain to passenger demand following Disney Treasure’s December 2024 launch. Profit declined from $347.4 million a year earlier, largely because of pre-operational spending for Disney Destiny and Disney Adventure, both of which entered service in fiscal 2026.

Occupancy was 97%, compared with 98% in fiscal 2024. Directors said consumer demand remained strong and that onboard and other spending rates exceeded the prior year, but they also said spending rates may vary in fiscal 2026 as the company broadens destinations and itineraries with a larger fleet.

The company also incurred higher passenger and landing fees at Disney’s Bahamian island destinations, Castaway Cay and Disney Lookout Cay at Lighthouse Point. Those fees were charged by DCL Island Development, Ltd., Magical Cruise Company’s wholly owned subsidiary, which operates both destinations. Lookout Cay, on Eleuthera, opened in June 2024.

Deposits topped $1 billion as cash moved around the group

The filing shows a $5.233 billion net asset position at Sept. 27, up from $3.322 billion a year earlier. Deposits received on cruises, recorded as deferred income and presented as current liabilities, rose to $1.065 billion and will be recognized as revenue in future financial years.

Magical Cruise Company was in a net current liability position at year-end, partly because of $708.1 million owed to group undertakings after cash was required elsewhere in the business for Disney Destiny and Disney Adventure. Directors adopted the going-concern basis after receiving a letter of support from a fellow group company, and the report said the balance reduced substantially after the fiscal year ended.

A separate $621.3 million loan balance owed by DCL Island Development was settled in September 2025 through the issuance of shares to Magical Cruise Company. During the year, Magical Cruise Company also issued 1.235 billion ordinary shares to Wedco EMEA Ventures Limited in exchange for cash.

Fleet growth shifted into fiscal 2026

During fiscal 2025, Magical Cruise Company operated six ships serving ports in North America, Europe and the South Pacific. The fleet ranged from the 85,000-ton Disney Magic and Disney Wonder, each with 875 staterooms, to the 140,000-ton Disney Wish and Disney Treasure, each with 1,250 staterooms.

Disney Treasure began its maiden voyage on Dec. 21, 2024, sailing Eastern and Western Caribbean itineraries from Port Canaveral. Disney Destiny was delivered in October 2025 and began its maiden voyage from Port Everglades on Nov. 20, 2025, followed by Bahamas and Western Caribbean sailings.

The 144,000-gt Disney Destiny carries up to 4,116 guests and 1,606 crew. Disney Adventure, the larger Asia-based addition, is listed at about 200,000 tons and 2,100 staterooms in the annual report; vessel data separately puts the ship at about 208,000 gt with capacity for roughly 6,000 to 6,700 passengers and about 2,300 to 2,500 crew.

Disney Adventure sailed its maiden voyage in March 2026 and is initially operating in Southeast Asia. The report said Disney ships will sail from Singapore’s Marina Bay Cruise Centre for at least five years under a collaboration with the Singapore Tourism Board.

Disney Wonder will not return to Australia and New Zealand after the 2025-26 season ends in February 2026, with the ship instead offering itineraries including Alaska and the Mexican Riviera.

Fuel, carbon pricing and weather exposure remain financial risks

The directors identified fuel prices, regulation, economic conditions, competition, travel disruption, cybersecurity, brand reputation and environmental reporting obligations among the company’s principal risks. Fuel remains a major cost item, and the report said the company uses marine gas oil, liquefied natural gas and hydrotreated vegetable oil, while also exploring fuels including green methanol and biogas.

Magical Cruise Company said it reduces fuel-price exposure through hedging, vendor diversification and supply agreements. Its hedge policy allows a 90% maximum within the financial year, equal to about 35% of total marine gas oil volume, and the company has also entered fixed-price LNG supply arrangements in Florida.

The EU Emissions Trading System has applied to maritime transport since Jan. 1, 2024, covering large passenger and cargo ships of at least 5,000 gt on EU and European Economic Area routes, with allowance surrender requirements phasing in from 40% of 2024 emissions to full coverage for 2026 emissions. The report said Italy is Magical Cruise Company’s administering authority under the EU ETS, primarily because of the concentration of its European operations in Italian ports and destinations.

The company also set out physical climate risks in The Bahamas and Florida, where it relies on island destinations, Port Canaveral, Port Everglades and its Celebration office. The report said Castaway Cay and Lookout Cay recorded zero operational days lost from site damage caused by weather events in fiscal 2023, fiscal 2024 and fiscal 2025.

On emissions, Magical Cruise Company reported Scope 1 and 2 emissions intensity of 88 kilograms of CO2e per passenger cruise day in fiscal 2025, down from 123 kilograms in fiscal 2019. That is a 28% reduction toward its 40% intensity-reduction target by 2030.

The report also discloses a four-ship orderbook, with deliveries beginning in 2027 and running through 2031.

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