ROYAL Caribbean Group (RCG) has upgraded its full-year profit expectations by a hefty 33% after seeing a particularly good second quarter result based on “stronger pricing on closer-in demand and further strength in onboard revenue”. CEO Jason Liberty said “our brands continue to fire on all cylinders, resulting in record...
ROYAL Caribbean Group (RCG) has upgraded its full-year profit expectations by a hefty 33% after seeing a particularly good second quarter result based on “stronger pricing on closer-in demand and further strength in onboard revenue”.
CEO Jason Liberty said “our brands continue to fire on all cylinders, resulting in record yields and second quarter earnings significantly exceeding our expectations”.
Key highlights included a record US$3.5 billion in revenues for the Apr-Jun quarter, with net income of US$459 million and a record US$1.2 billion adjusted EBITDA.
“Booking volumes in the second quarter remained significantly higher than the corresponding period in 2019 and at record pricing levels,” the company said.
“Demand for 2023 sailings has significantly exceeded expectations and bookings for 2024 sailings are up significantly versus all prior years at record prices…demand from the North American consumer has remained incredibly strong throughout the year, and booking volumes from European consumers who are booking European cruises this summer have accelerated.”
Consumer spending on board also continues to be significantly higher than in 2019, with RCG overall holding a record US$5.7 billion in customer deposits.
The performance enabled Royal Caribbean Group to accelerate its debt reduction efforts, according to CFO Naftali Holtz.
During the quarter the group took delivery of the LNG-powered Silver Nova (pictured) and expects to take delivery of Icon of the Seas and Celebrity Ascent before the end of the year.
