ROYAL Caribbean Group (RCG) has reported a USD$48m loss for the first three months of the year, with the figure “significantly better than the company’s guidance” due to strong close-in bookings at higher prices. The company also increased its 2023 profit forecast, attributing the result to continued strength of onboard...
ROYAL Caribbean Group (RCG) has reported a USD$48m loss for the first three months of the year, with the figure “significantly better than the company’s guidance” due to strong close-in bookings at higher prices.
The company also increased its 2023 profit forecast, attributing the result to continued strength of onboard spend, and favourable timing of operating costs.
The company’s Royal Caribbean International, Celebrity Cruises and Silversea Cruises brands together recorded a 102% occupancy figure for the quarter.
“We knew demand for our business was strong…(but) what transpired over the past four months was much better than we anticipated,” Group Chief Executive Jason Liberty (pictured) said.
“The fact that demand for the coming nine months is so much stronger says a lot about the strength of the consumer.”
Liberty said leisure travel demand continues to strengthen, with consumer spend further shifting towards experiences.
“Demand for our brands is outpacing broader travel due to a strong rebound and an attractive value proposition,” he added.
Total revenues for the quarter amounted to US$2.9 billion, and Liberty noted record levels of customer deposits which sat at USD$5.3 billion as at 31 Mar.
Liberty revealed that capital expenditures for the full year are expected to amount to USD$4.2 billion, with the company expecting to take delivery of Icon of the Seas, Celebrity Ascent and Silver Nova.
As well as strong demand, the company “continued to benefit from multiple actions taken over the past several years to reshape its cost structure, which is helping to offset persistent inflation,” Liberty said.
Net yields are expected to improve compared to 2019, and Royal Caribbean Group is now expecting to significantly exceed its prior record profit which was achieved the year before the onset of the COVID-19 pandemic.
RCG shares jumped about 8% after the results were announced.
