Royal Caribbean Group posts ‘stronger-than-expected’ second-quarter performance

Royal Caribbean Group has reported a “stronger-than-expected” performance for the second quarter and raised its full-year guidance on the back of strong late demand.

Total revenue was up 6% year on year to $4.8 billion and net income increased by 9% to $1.1 billion.

Meanwhile, adjusted Ebitda, a measure of profit, dropped slightly from $1.85 billion for the second quarter of 2025 to $1.83 billion for this quarter.

Capacity in the second quarter grew by 5% year on year, and over the same time the group carried 2.4 million passengers, a 6% jump on 2025 levels.

Third-quarter revenue is expected to increase by 8% year on year, and full-year revenue is forecast to grow by 9% year on year, reflecting “continued healthy demand and pricing at record levels”.

The upgraded outlook takes into account “a modest booking impact” on some itineraries due to “prolonged geopolitical activity”.

Chief executive Jason Liberty said: “The strong second quarter performance demonstrates the continued strength of our brands, the appeal of our vacation experiences, and the momentum in our business.

“We expect another year of approximately double-digit growth in revenue and earnings, driven by consumers’ preference for our leading brands and supported by our strong booked position, leading margin profile, and fortified balance sheet.”

He added the company would “continue to expand, elevate and differentiate” its portfolio, pointing to the debut of its third Icon Class ship earlier this month, Legend of the Seas, as “an important milestone” in its “innovation pipeline”.

Aside from hardware, Liberty highlighted developments in its loyalty and technology platforms which were “strengthening our relationships with guests”, increasing repeat rates and “positioning us to capture a greater share of the growing $2 trillion global vacation market."

Chief financial officer Naftali Holtz added: “While still very early, booking trends for 2027 are encouraging and pacing ahead of historical levels, including for itineraries where demand was impacted by geopolitical developments this year.”