Cruise operators are now reaping the rewards as travelers gravitate to cruise vacations that offer a range of fun activities under one roof and are cheaper compared to taking a land-based holiday.
This has given them the ability to further hike itinerary prices, especially in North America and Europe, as occupancy levels now approach pre-pandemic levels.
The cruise company said occupancy in the third quarter was 109.7%, up from 105% reported in the second quarter.
Royal Caribbean (NYSE:RCL) expects annual adjusted profit between $6.58 and $6.63 per share, compared with its earlier forecast of $6.00 to $6.20.
However, shares of Royal Caribbean reversed course to be down marginally in volatile premarket trade after the company said its full-year earnings per share would take an 18-cent hit from higher fuel prices and a stronger dollar.
The Miami, Florida-based company also said the ongoing military conflict in the Middle East is also expected to hit its annual profit by 3 cents.
Peer Carnival (NYSE:CCL) in September narrowed its annual loss forecast and posted a third-quarter profit after reporting a loss a year earlier, but investors showed deep concerns around steeper fuel costs.
Rival Norwegian Cruise Line (NYSE:NCLH) reports third-quarter results on Nov. 1.
Royal Caribbean’s quarterly total revenue rose 39% to $4.16 billion, compared with estimates of $4.08 billion, according to LSEG data.
The company also expects an adjusted profit between $1.05 and $1.10 per share in the fourth quarter, compared with analysts’ expectations of $1 per share.
On an adjusted basis, the company earned $3.86 per share, compared with estimates of $3.46.
Source: Economy - investing.com
