Bookings for 2017 across all Royal Caribbean Cruises brands have hit record levels.
Business is better than last year on both a rate and volume basis, the world’s second largest cruise company reported on the back of higher first quarter profits and revenues.
Adjusted net income for the first three months of the year more than doubled to $214.5 million on revenues up to more than $2 billion from $1.9 billion in the same period last year.
The owner of brands such as Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises said strength in Europe was offsetting the impact of geopolitical tensions in Korea.
Chairman and chief executive, Richard Fain, said: “Our progress continues on a steady upward path toward our Double-Double goals.
“The year started off with a very positive tone and the tone has only continued to please. We are looking forward to our fifth consecutive year of double-digit earnings growth.”
‘Double-Double’ is a target set in 2014 to double adjusted earnings per share and return of invested capital during 2017.
“Overall, the year has developed very much along the trajectory the company projected at the beginning of the year,” Royal Caribbean Cruises said.
“Bookings started the year on a very strong note and continued to please.
“This strong demand for cruises generally has offset the recent headwinds from the disrupted Korean sailings mainly during the second and third quarters.”
Chief financial officer Jason Liberty said: “First quarter’s results are evidence that demand for cruise has room to grow, especially considering a 7% yield improvement achieved in the first quarter of last year.
“With consumers making the choice to spend more on experiences, our innovative hardware and superb onboard delivery is thriving.”
The company also announced on Friday that its board of directors had authorised a $500 million share buyback.
Norwegian Cruise Line Holdings announced yesterday that it was extending a three-year, $500 million share repurchase programme, which was originally scheduled to expire on April 29, 2017, through April 29, 2020.