The Los Angeles Post
California & Local U.S. World Business Lifestyle
Today: January 20, 2025
Today: January 20, 2025

Royal Caribbean lifts profit view again on cruise boom, higher prices

FILE PHOTO: Royal Caribbean's Icon of the Seas, the largest cruise ship in the world, is docked in Mahahual
May 10, 2024
Reuters - Reuters

By Juveria Tabassum and Doyinsola Oladipo

(Reuters) -Royal Caribbean Group on Thursday raised its annual profit forecast for a second time, after record bookings during the first quarter and higher ticket pricing boosted its results, sending its shares 4% higher premarket.

Soaring demand for vacations at sea has given cruise operators ample room to raise ticket prices as the industry looks to close the pricing gap between more expensive land-based holidays and give their profits a lift.

Royal Caribbean also beat expectations for quarterly profit and revenue, with half of its yield growth coming from higher ticket pricing.

"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," said CEO Jason Liberty.

The company now expects annual adjusted profit between $10.70 and $10.90 per share, compared with its earlier forecast of $9.90 to $10.10.

The Celebrity Cruises operator carried 2.05 million passengers in the quarter, nearly 14% higher year-over-year. It also reported record demand during the "wave season" - a period marked by special cruise deals and discounts for the year.

That helped its quarterly revenue of $3.73 billion surpass expectations of $3.69 billion, according to LSEG data.

Higher ticket prices have helped shield the company from slightly steeper net cruise costs expected this year due to increased dry dock days, as well as an impact from canceled voyages to the Red Sea amid tensions in the region.

The company expects net cruise costs excluding fuel to increase about 5.5% for the year, up from its earlier forecast for a rise between 3.75% to 4.25%.

Royal Caribbean's adjusted earnings per share of $1.77 beat market expectations of $1.33.

"I remember owning the stock in 2022 and every client was giving me grief about it," said Peter Ahluwalia, manager at Belinvest Global Equity Fund that holds Royal Caribbean stocks and chief investment officer at Swiss Partners Group. "We're turning almost 45% return on equity at the moment, which is quite incredible."

Shares of the company have risen 126% to about $137 in the past year.

(Reporting by Juveria Tabassum in Bengaluru and Doyinsola Oladipo in New York; Editing by Devika Syamnath)

Related

Australia|Business|Entertainment|Sports

Australia's Optus mulls selling sports streaming to Nine, AFR reports

Optus, Australia's No. 2 telecom carrier, is in talks to sell its sports streaming platform Optus Sport to media house Nine Entertainment, the Australian Financial Review (AFR) reported on

Australia's Optus mulls selling sports streaming to Nine, AFR reports
Business|Economy|Finance|Political|Stock Markets|US

Copper market sees half chance of 10% US tariff by first quarter-end, Goldman says

Goldman Sachs on Monday said the copper market is pricing in odds of about 50% that there will be a 10% U.S. tariff on the metal by the end of the first quarter of this year.

Copper market sees half chance of 10% US tariff by first quarter-end, Goldman says
Asia|Business|Technology

China's COMAC aims to lift C919 jet production capacity to 50 this year, report says

Chinese planemaker COMAC plans to raise production capacity for its homegrown C919 single-aisle planes to 50 this year, a COMAC executive told a media outlet supported by the

China's COMAC aims to lift C919 jet production capacity to 50 this year, report says
Asia|Business|Economy|Finance|Political

Chinese investors pile into Bridgewater-style funds, eyeing Trump return

Chinese hedge fund managers are racing to launch products styled on Bridgewater Associates' popular "All Weather" strategy, to meet hot

Chinese investors pile into Bridgewater-style funds, eyeing Trump return
Share This

Popular

Asia|Business|Economy|Lifestyle

China's frugal young adults accelerate saving, raising economic risks

China's frugal young adults accelerate saving, raising economic risks
Business|Economy|Europe|Finance

Czech billionaire Kretinsky's EPH joins suitors for Uniper, sources say

Czech billionaire Kretinsky's EPH joins suitors for Uniper, sources say
Asia|Business|Political|US|World

Vice President Han Zheng, China's representative at Trump's inauguration, is a trusted adviser to Xi

Vice President Han Zheng, China's representative at Trump's inauguration, is a trusted adviser to Xi
Business|Europe|Finance|Political|Stock Markets

European shares steady as Trump's inauguration takes centre stage

European shares steady as Trump's inauguration takes centre stage

Thanks for reading The Los Angeles Post

Create your free account or log in to continue reading.

Already have an account? Sign In