Royal Caribbean Group’s second quarter earnings have “significantly exceeded” its expectations, as the cruising giant reported a record $3.5 billion total revenue.
The group, which operates Royal Caribbean International, Celebrity Cruises and Silversea Cruises, said strong ticket pricing from both Europe and North America itineraries combined with increased onboard spending led to “better than expected revenues” between April 1 and June 30, resulting in a record breaking quarter for total revenue.
Booking volumes in the second quarter were “significantly higher than the corresponding period in 2019” as the number of European consumers booking European cruises this summer accelerated, while demand from North American consumers have remained strong throughout the year, said the group.
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The company said its customer deposit balance was at a “record high” as of the end of last month at a total of $5.7 billion, beating its previous $5.3 billion record achieved last quarter, and it reported a net income of $458.8 million.
Jason Liberty, president and chief executive, said: “Our brands continue to fire on all cylinders, resulting in record yields and second quarter earnings significantly exceeding our expectations.
“Demand for cruising and our brands is exceptionally strong and we have seen another step change in booking volumes and pricing, leading us to now expect double digit net yield growth for the full year.”
Naftali Holtz, chief financial officer, said: “Strengthening the balance sheet continues to be a top priority.
“Better than expected financial results and cash flows have allowed us to accelerate reduction in both leverage and debt levels.”