John McCarthy
MIAMI — Royal Caribbean raised its annual profit forecast today for the third time this year on higher ticket pricing and persistent demand for cruise vacations.
Cruise operators have raised ticket prices over the last two years, capitalizing on record demand as Americans splurge on experiences.
“Exceptional demand for our vacation experiences has accelerated our performance by generating significant yield growth over the past several years,” Royal Caribbean CEO Jason Liberty said.
The company also said it met its financial targets 18 months earlier than expected.
Shares of Royal Caribbean have risen 27% so far this year following a 161% rise in 2023.
The company forecast annual adjusted earnings per share between $11.35 and $11.45, compared with its earlier expectations of $10.70 to $10.90.
The Silversea Cruises parent also topped market expectations for second-quarter revenue and profit, and forecast current quarter adjusted profit above analysts’ estimates.
However, the cruise operator’s shares were down about 1% before the bell after the company said it expects higher net cruise costs for the year.
The company expects full-year net cruise costs to rise about 6%, compared with its earlier forecast of a 5.5% rise.
Royal Caribbean’s total second-quarter revenue rose over 16% to $4.1 billion, compared with LSEG estimates of $4.04 billion.
It reported adjusted earnings per share of $3.21, compared with analysts’ estimates of $2.75.
Reporting by Juveria Tabassum and Doyinsola Oladipo; Editing by Krishna Chandra Eluri, Shounak Dasgupta and Shinjini Ganguli
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