Royal Caribbean forecast its annual profit largely above analysts’ expectations on Tuesday, betting on higher cruise bookings to private destinations as well as premium voyages to the Mediterranean and the Alaskan region.
Shares of the cruise operator were up 2 per cent in premarket trading.
Popularity of sea-based vacations has surged lately with cruise operators investing millions of dollars in introducing new ships and private-destination travel itineraries packed with excursions, beaches, bars and restaurants.
Analysts noted that Royal Caribbean in particular, has seen strong demand for CocoCay, an amusement park-like private destination in The Bahamas.
The company expects full-year 2025 annual adjusted earnings per share of USD 14.35 to USD 14.65, compared with analysts’ average expectation of USD 14.41, according to data compiled by LSEG.
Total fourth-quarter revenue rose to USD 3.76 billion from USD 3.33 billion a year earlier. Analysts on average had expected USD 3.77 billion.
Royal Caribbean increased its profit forecast for the year due to high demand and rising ticket prices. Despite challenges from Hurricane Milton, third-quarter revenues nearly met estimates. Hot weather is prompting early bookings for cooler destinations. The company expects strong demand for 2025 with higher booking rates, allowing further price hikes.
