by Sarah Kuta
Last updated: 12:00 PM ET, Thu April 25, 2024
Record bookings and higher prices buoyed Royal Caribbean Group’s first quarter results, with the company also beating expectations for quarterly profit and revenue.
The company’s cruise lines welcomed 2.05 million passengers during the first quarter, a 14 percent increase from the same period last year. Royal Caribbean Group also had its best wave season in company history, with strong bookings continuing into April.
"Wow, what a great start to the year,” said Jason Liberty, president and CEO of Royal Caribbean Group, in an update for investors. “Demand for our leading brands and the incredible experiences they deliver continues to be very robust, resulting in outperformance in the first quarter, a further increase of full year earnings guidance and 60 percent expected earnings growth year over year."
Jason Liberty, Royal Caribbean CEO and CLIA Global Executive Chair. (Photo Credit: Cruise Lines International Association)
The company was able to capitalize on strong demand for cruises by raising fare prices, which helped boost its profits.
The higher prices also helped Royal Caribbean Group hedge against projected 5.5 percent higher costs this year, due to more days spent in dry dock for its ships and canceled sailings because of the ongoing Red Sea attacks.
Quarterly revenue was $3.73 billion, which surpassed expectations of $3.69 billion.
Royal Caribbean Group raised its annual profit forecast: It’s now projecting an annual adjusted profit between $10.70 and $10.90 per share, up from its previous forecast of $9.90 to $10.10 per share.
"Our existing fleet along with our new ships continue to perform exceptionally well, highlighted by the market response to the launch of Icon of the Seas, which has exceeded all expectations," said Liberty. "The momentum continues with Utopia of the Seas and Silver Ray, set to launch this summer. And, just this quarter alone, we announced an order for a seventh Oasis Class ship and the expansion of our Royal Beach Club portfolio in Cozumel; and we officially broke ground on Royal Beach Club Paradise Island. These strategies will further propel our leadership in the cruise industry and push us to new heights in the vacation industry."
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