Royal Caribbean Group has lifted its full-year guidance, after posting major growth in passengers, revenue, and earnings per share.
Revenue was US$4.54 billion, up 10.4% year-over-year but below LSEG estimates of $4.55 billion. Adjusted earnings per share were $4.38, rising from $3.21 one year ago and above estimates of $4.09.
“Demand for our portfolio of brands and our industry-leading experiences continues to accelerate. Grounded in our mission to deliver the best vacations responsibly, we remain keenly focused on delivering exceptional value for our guests and shareholders — not just by executing today, but by staying ahead of where demand is going,” said Royal Caribbean Group CEO Jason Liberty.
“We are well on our way to achieving our Perfecta financial targets by the end of 2027. As we look beyond 2027, we see another step change in growth as we deepen our moat with a powerful pipeline of incredible new ships, the ramp-up of our highly differentiated new destinations and river cruising, and continued investments in disruptive technology, personalization and loyalty.”
The company served 2.3 million guests last quarter, up 10% year-over-year. Its capacity increased by 5.8%, and occupancy levels reached 110.3% as more than two passengers occupied certain cabins.
Passenger ticket revenues grew by US$312 million year-over-year to $3.20 billion, with onboard and other revenues up $116 million to $1.34 billion.
Total operating income was US$1.33 billion, rising from $1.10 billion one year ago. Operating expenses increased from $131 million to $2.28 billion, driven by growth in all expense categories except fuel.
Royal Caribbean’s full-year guidance now expects adjusted earnings per share of US$15.41-15.55, compared with its previous guidance of $14.55-15.55.
It projects 2.3-2.8% growth from the previous year in net yields next quarter. Capacity will increase by 2.9% year-over-year with the launch of its Star of the Seas ship, which can accommodate 5,610 passengers.
Royal Caribbean’s (NYSE: RCL) share price closed at US$334.37, down from its previous close of $352.00, before rising to $335.72 in after-hours trading. Its market capitalisation is $90.80 billion.
