Royal Caribbean Group is “nearing the point for full recovery” as it reported yields improved by 8% during the third quarter.
The cruising giant achieved a net income of $33 million in the quarter, compared with a net loss of $1.4 billion in the same three-month period in 2021.
Total revenue was “just shy” of $3 billion, chief financial officer Naftali Holtz said, during a quarterly financial results call last week.
More: Royal Caribbean reports ‘better than expected’ third quarter results
“With our ramp-up we are nearing the point of full recovery to our record 2019 yields,” he said.
“Our yield improved by 8% in the third quarter, and we expect a similar improvement in the fourth quarter.”
Holtz predicted that yields would continue to increase “in the first half of 2023” as load factor returned through spring.
Load factors reached 96% in the last quarter with Caribbean sailings reaching nearly 105%, Europe just under 90%, and Alaska around 96%, the company said.
“We expect Caribbean sailings to continue to sell a triple-digit load factors with slightly lower occupancies on late-season Europe sailings,” said Holtz.
Currently, around two-thirds of the company’s capacity is in North America during the winter, with remaining capacity “mostly split” between Europe, Australia and repositioning voyages, Holtz added.
He forecasted that load factors in Australia, where the company has not operated for three years, would be in the low to mid 90s.
The company, which operates Royal Caribbean International, Celebrity Cruises and Silversea Cruises, confirmed its full fleet had resumed operations in June.
It is also a 50% owner of a joint venture that operates Tui Cruises and Hapag-Lloyd Cruises.