Royal Caribbean reports increased profit in third quarter results

In:
24Oct2013

Royal Caribbean reported its third quarter fiscal results today of a net income of $377.9 million or $1.71 per share, compared with $367.8 million or $1.68 per share last year.

Royal Caribbean attributes the increase in revenue compared to last year to close-in demand in Europe and Asia as well as good cost control, despite cost impacts from the Celebrity Millenium unscheduled drydock.

Booked load factors are ahead of this time last year in all four quarters of 2014, according to the company. It forecast that 2014 should be the fifth consecutive year for yield growth.

Prices for the first quarter are in-line with the same time this year and are up for the second, third and fourth quarters.

Royal Caribbean Chairman Richard Fain commented on the company's results, "We are beginning to see the payoff from our efforts to improve returns during these challenging times. We have a ways to go, but our strategy and our investments are driving higher revenues and achieving cost efficiencies that bode well for 2014 and beyond. We are especially grateful for our employees' dedication to our profitability improvement initiatives."

Overseas, things are looking good for Royal Caribbean with booked load factors and rates both up significantly year-over-year for Europe.  Asian bookings are up “considerably” despite a continued territorial dispute between China and Japan.

Advance bookings for Alaska cruises are also “providing encouragement for yield improvement.”