MIAMI (Reuters) — Royal Caribbean Group reported a smaller-than-expected loss for its fourth quarter today, as pent-up demand for leisure travel helped offset the pressures from rising fuel prices and stronger dollar.
Shares of the company rose about four percent in premarket trade after the company said booking volumes in the reported quarter were significantly higher than the corresponding period in 2019, before the pandemic outbreak shut down the industry.
Occupancy rates have strongly rebounded since restrictions imposed during the pandemic were lifted, while the easing of on-board COVID-19 protocols has boosted spending on casinos and spas.
Cruise liners are also seeing strong booking volumes and occupancy rates by well-to-do Americans for the wave season, an important period between January and March where the operators offer special cruise deals and discounts for the year.
In late December, Carnival Corp also said it was seeing a strong start to the wave season after it posted a smaller-than-expected quarterly loss.
Royal Caribbean saw occupancy rates rise to 94.9 percent in the fourth quarter ended Dec. 31, compared to 59.3 percent a year earlier, when Omicron-related restrictions dampened demand for cruises.
The company said the strong booking momentum has extended into early 2023 and it was seeing a record-breaking wave season.
It reported a fourth-quarter loss of $1.12 per share, compared with analysts’ expectations of a loss of $1.34, according to Refinitiv IBES data.
However, the cruise operator missed revenue estimates for the fourth quarter and forecast 2023 adjusted profit between $3.00 and $3.60 per share, compared with estimates for a profit of $3.31.
—REUTERS
Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Sriraj Kalluvila
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