Strong demand and higher pricing for Royal Caribbean Cruises has led to robust second quarter results and an all-time high in share prices, which have soared by 245% since the start of last year.
"Our momentum continues! We met our financial targets 18 months earlier than expected, have our balance sheet in a strong position, reinstated our dividend, and ... we are just getting started," said Jason Liberty, president and CEO, Royal Caribbean Group.
"Exceptional demand for our vacation experiences has accelerated our performance by generating significant yield growth over the past several years," added Liberty.
"As we look forward, we remain intensely focused on driving strong shareholder returns by delivering a lifetime of vacations and taking a greater share of the rapidly growing $1.9 trillion global vacation market. This is underpinned by our formula for future success – disciplined growth and moderate yield growth while controlling our costs."
Utopia of the Seas arrives at Perfect Day at Coco Cay, Royal Caribbean's private island destination. (Photo Credit: Royal Caribbean International)
For the 12 months ending June 30, the company achieved all three of its ‘Trifecta’ goals: triple digit Adjusted EBITDA per APCD, return on invested capital (ROIC) in the teens, and double digit Adjusted EPS. Load factors in the second quarter were 108%.
Total revenues were $4.1 billion, Net Income was $854 million compared to $459 million for the same period in the prior year. Adjusted Net Income was $882 million compared to $492 million for the same period in the prior year.
Royal Caribbean says the demand and pricing environment remained very strong since the last earnings call three months ago. Booking volumes were higher than the corresponding period in 2023 and at record pricing levels. The company continues to be in a record booked position for 2024 sailings. Consumer spending onboard, as well as pre-cruise purchases, continue to significantly exceed 2023 levels driven by greater participation at higher prices.
"We are thrilled with the ongoing excitement for our incredible vacation experiences, which has continued to result in better bookings than prior years," said Liberty. "We have seen strength for all key products and are already taking more bookings for 2025 sailings than 2024."
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