Carnival (NYSE: CCL) just released its earnings for the first quarter of fiscal 2023 (ending Feb. 28). The company informed investors that it is within striking distance of pre-pandemic revenue levels.

Certainly, that is good news for a company that endured a 99% reduction in revenue for more than a year during the pandemic. However, investors should not assume that this event constitutes a recovery for the cruise line stock. Here's why.

Admittedly, Carnival's first quarter of fiscal 2023 gives the impression that the company is on the cusp of a full recovery. Revenue of $4.4 billion is up significantly from the $1.6 billion in the year-ago quarter. It is also just 7% below revenue levels from the first quarter of fiscal 2020, which ended just before the pandemic temporarily shuttered the industry.

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Source Fool.com