Royal Caribbean Group has reported strong first quarter 2024 financial results, with adjusted net income of $478 million compared to an adjusted net low of $59 million for the same period in 2023. The company says it has just enjoyed the strongest WAVE season in its history, from both a demand and pricing standpoint.
These results were better than the company's guidance due to stronger pricing on close-in demand, strength in onboard revenue and favourable timing of expenses.
"Wow, what a great start to the year! Demand for our leading brands and the incredible experiences they deliver continues to be very robust, resulting in outperformance in the first quarter, a further increase of full year earnings guidance, and 60% expected earnings growth year over year," said President and CEO Jason Liberty.
"Building on this momentum, we expect to achieve all our Trifecta financial goals in 2024, which allows us to focus on a new era of growth to drive long-term shareholder returns and take a greater share of the rapidly growing $1.9 trillion global vacation market."
Royal Caribbean's Perfect Day at Coco Cay (Photo via Lauren Bowman)
Royal Caribbean Group says stronger than anticipated demand led to a record WAVE season and continued strength in bookings in April from both a volume and pricing standpoint. This robust booking environment across all key itineraries coupled with continued strength in onboard spend, led to higher revenue versus guidance in the first quarter and a further improvement in full year yield expectations.
Load factors in the first quarter were 107% and gross margin yields were up 60.3%. Net Yields were up 19.3%. Total revenues were $3.7 billion, and operating cash flow was $1.3 billion.
Looking ahead, Royal Caribbean group says the demand and pricing environment continues to be very strong. Overall, this has been the strongest WAVE season in the company's history from both a demand and pricing standpoint.
As a result, the company continues to be in a record booked position, with rates for 2024 sailings even further ahead of 2023 than they were at the beginning of the year. In addition to record ticket pricing, consumer spending onboard and pre-cruise purchases continue to exceed prior years driven by greater participation at higher prices.
The strong debut of Icon of the Seas helped propel Royal Caribbean Group results. (Photo Credit: Eric Bowman)
"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, which has exceeded all expectations," added Liberty.
"The momentum continues with Utopia of the Seas and Silver Ray, set to launch this summer. And, just this quarter alone, we announced an order for a seventh Oasis Class ship and the expansion of our Royal Beach Club portfolio in Cozumel; and we officially broke ground on Royal Beach Club Paradise Island. These strategies will further propel our leadership in the cruise industry and push us to new heights in the vacation industry."
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