MIAMI — Royal Caribbean boosted its annual profit forecast today for the fourth time this year, driven by high demand for private destinations and cooler cruise travel spots, as well as multiple ticket price hikes.
The surge in cruise demand is still going strong and customers are also splurging on on-board activities, boosting growth at operators including Royal Caribbean, Norwegian Cruise and Carnival Cruise.
However, Royal Caribbean, which owns the world’s largest cruise ship, warned that it expects a hit to fourth-quarter profit from Hurricane Milton, which wreaked havoc in the Atlantic region, forcing the company to adjust itineraries.
It forecast fourth-quarter adjusted profit per share between $1.40 and $1.45, compared to an estimate of $1.58, according to data compiled by LSEG.
Shares of the company, which have risen 57% so far this year, were down 2% in premarket trading.
Royal Caribbean’s third-quarter total revenue rose nearly 18% to $4.89 billion, compared to an estimate of $4.90 billion.
“Our exceptional third quarter results and increased full year expectations reflect the robust demand for our differentiated vacation experiences,” Royal Caribbean Group CEO Jason Liberty said in a statement.
Major cruise operators are investing millions of dollars into their own private destinations, packed with excursions, beaches, bars and restaurants, helping attract customers looking for amusement park-like vacations while on a cruise.
Royal Caribbean said demand for 2025 was strong, with booked load factors in line with prior years and at higher rates, allowing for further price hikes as 2025 bookings ramp up.
It expects annual adjusted earnings per share of $11.57 to $11.62, compared with its earlier expectation of per share profit between $11.35 and $11.45.
The company posted third-quarter adjusted earnings per share of $5.20, compared with analysts’ estimate of $5.03 per share.
Royal Caribbean includes St. Thomas and St. Croix in many of its cruise itineraries of the Caribbean.
By REUTERS
Reporting by Ananya Mariam Rajesh in Bengaluru and Doyinsola Oladipo in New York; Editing by Sriraj Kalluvila and Pooja Desai
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Ananya Mariam Rajesh as the U.S. consumer and retail sector specialist for Thomson Reuters covers breaking and business news on major firms including Walmart, Nike, Procter & Gamble, PepsiCo and Coca-Cola among other U.S. listed Cruises, Apparel Makers, Discount Stores, Beverages, Second-hand Retailers, Restaurants, Luxury companies. She writes long-form initiative stories supported by data sets explaining the current consumer demand trends in the U.S. and the impact of macroeconomic conditions on retailers and companies. As a sector lead, she mentors and trains newer members of the team bringing them up to speed with sector knowledge.
