by Lacey Pfalz
Last updated: 9:00 AM ET, Fri October 27, 2023
Royal Caribbean Group’s third quarter 2023 business outlook shows how the steady popularity of cruising is driving the economic growth of one of the world’s largest cruise corporations, which owns Royal Caribbean International, Celebrity Cruises and Silversea.
The corporation reported a total revenue of $4.2 billion, an adjusted net income of $1.1 billion and Adjusted EBITDA, or earnings before interest, taxes, depreciation or amortization, of $1.7 billion.
This is a huge increase from the third quarter of 2022, when net income was reported at $33 million and adjusted net income was $65.8 million.
Operating costs are increasing for Royal Caribbean Group’s cruise lines. Gross Cruise Costs per Available Passenger Cruise Day (APCD) which are operating costs the cruise lines incur for every day they sail, have increased 14.4 percent. Net Cruise Costs per APCD, excluding fuel costs, also increased 10.3 percent.
The group reported higher load factors and higher pricing across North America and Europe. Load factor for the third quarter was 110 percent.
Bookings continue to exceed pre-pandemic levels in the third quarter of 2023, with higher load factors, higher pricing for cruises and higher onboard revenue.
The group expects the fourth quarter to continue this trend. Looking into 2024, customers continue outpacing 2019 booking numbers, with travelers spurred by new ships and the expansion of Perfect Day at CocoCay.
"The strength of our brands and the acceleration of consumer spending on experiences have propelled us towards another outstanding quarter and a robust 2023," said Jason Liberty, president and CEO, Royal Caribbean Group. "Looking ahead, we see accelerating demand as we build the business for 2024. Our booked load factors are higher than all prior years and at higher rates, further supporting our trajectory towards the Trifecta goals," added Liberty. "The combination of our leading brands, the best people, and the most innovative fleet and destinations, positions us exceptionally well to deliver on a lifetime of vacation experiences while creating long-term shareholder value."
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