Royal Caribbean Group has reported its third-quarter financial results were above expectations, driven by “strong demand” and “further strength” in onboard revenue.
Net income for the three months to the end of September was $1 billion, compared $33 million for the same period in 2022. Total revenue was $4.2 billion, up from $3 billion last year, and load factor was 110%.
The cruise giant said: “Bookings remained strong throughout the third quarter, significantly exceeding 2019 levels.
“Closer-in demand for 2023 sailings exceeded expectations, contributing to higher load factors at higher prices and higher onboard revenue for the third quarter.
“Consumer spending onboard, as well as pre-cruise purchases, continue to significantly exceed 2019 levels driven by greater participation at higher prices.”
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Jason Liberty, chief executive of the group which operates Royal Caribbean International, Celebrity Cruises and Silversea Cruises, said: “The strength of our brands and the acceleration of consumer spending on experiences have propelled us towards another outstanding quarter and a robust 2023.
“Looking ahead, we see accelerating demand as we build the business for 2024.
“Our booked load factors are higher than all prior years and at higher rates.”
The company said demand for 2024 has “continued to accelerate, with bookings significantly and consistently outpacing 2019 levels”.
Booked load factors and rates are higher than all previous years while the booking window has continued to extend, it added.
“The market response to the company’s new ships, existing hardware, and the expansion of Perfect Day at CocoCay, and Hideaway Beach, has been excellent and further positions the company for strong yield and earnings growth in 2024,” the Q3 statement continued.
Naftali Holtz, chief financial officer, said: “The performance of our business continues to accelerate, driven by strong demand and excellent operational execution.
“Our formula of moderate yield growth, strong cost discipline, and moderate growth of our fleet delivers a strong financial profile and enhanced margins.”