Royal Caribbean reported its first quarter 2013 financial results today with almost double net income this year compared to the same period in 2012.

Royal Caribbean chairman Richard Fain was excited to report the news, "It was a gratifying first quarter. Ticket revenues were better than expected, costs were well controlled and it was encouraging to see record guest satisfaction and noticeable improvements in onboard spending as a result of our revitalization efforts."

Royal Caribbean's first quarter 2013 net income was $76.2 million ($0.35 per share) compared to $47.0 million ($0.21 per share) in the first quarter of 2012.

Both onboard revenue and ticket pricing improved, contributing to a Net Yield increase of 3.6% on a Constant-Currency basis. NCC excluding fuel were also better than anticipated, primarily due to timing, and declined 0.5% on a Constant-Currency basis.

Bunker pricing net of hedging for the first quarter was $699 per metric ton and consumption was 5,000 metric tons lower than expected at 345,900 metric tons. Versus the first quarter of 2012, fuel consumption per APCD was 1.2% lower.  

Look forward to the rest of 2013, Royal Caribbean's booking volumes are averaging 5% ahead of last year.  Bookings from North America have remained strong since the beginning of the year, even with the company's expectations of "modest disruption" of demand for Caribbean cruises thanks to negative media coverage.  Demand in Europe increased in early February and Royal Caribbean expects pricing improvement for the region this year. Demand from China has weakened somewhat due to itinerary changes related to the territorial dispute with Japan.

Port Canaveral, Florida is ready to welcome a new Royal Caribbean ship that will call the Atlantic hub home.  Enchantment of the seas will begin offering year-round three- and four-night Bahamas cruises starting this week.

Enchantment of the Seas is replacing Monarch of the Seas, which Royal Caribbean recently transferred to sister cruise line Pullmantur, which occurred earlier this month.

The 2,252 passenger ship first debuted in 1997 and was recently refurbished as part of Royal Caribbean's Royal Advantage program. Its signature features include a pool deck with interactive splash pad with dual suspension bridge on either side of the ship. It also features the popular rock wall and a bungee trampoline attraction.

The December 2012 refurbishment added Royal Babies & Tots Nursery, '60s-era R Bar and new dining option, the Park Café gourmet deli.

Other enhancements include Wi-Fi service throughout the ship, flat panel TVs in each stateroom, interactive digital signage and an outdoor, poolside movie screen that proved popular on the Oasis-class ships. Also new to the ship are the Concierge Club lounge for suite guests and Diamond Club for the line's loyalty program members.

Enchantment of the Seas first cruise out of Port Canaveral will be a four-night Bahamas cruise on April 25th.  It then will begin its normal Monday-Friday, four-night and Friday-Monday, three-night itineraries year-round. The three-night itinerary also makes stops at Coco Cay and Nassau.

Royal Caribbean has another ship year-round that calls Port Canaveral home, which is Freedom of the Seas.  Enchantment of the Seas is the first new Royal Caribbean ship at the port in four years.

More than a thousand Royal Caribbean employees, friends, families, vendors and business partners volunteered to spend their day off this past Saturday to improving a South Florida community as part of the company's 16th annual G.I.V.E. Day.

G.I.V.E., which stands for "Get Involved Volunteer Everywhere," is a community service event that assists non-profit organizations and improves the quality of life in their local communities. The volunteers painted and landscaped the grounds at Kids In Distress, the home away from home for many children in the South Florida foster care system, located in the Wilton Manors neighborhood of Fort Lauderdale, Fla.

After a hard day's work, volunteers transformed the Kids In Distress grounds with more than 2,000 gallons of environmentally-friendly paint for 13 buildings and surrounding areas; 8,500 plants, including fruit trees and vegetables native to Florida; 100 bird feeders made by young volunteers; and by reconnecting the irrigation system, which will help Kids In Distress save on their monthly water expenses. In addition, their donation center was inventoried and organized to help them better serve their 5,000 kids in foster care homes throughout Broward and Palm Beach Counties.  

"As one of the largest employers in South Florida, we are committed to supporting and helping our local communities," said Richard D. Fain, chairman and chief executive officer, Royal Caribbean Cruises Ltd. "We hope that the personal satisfaction and enjoyment of assisting our neighbors on G.I.V.E. Day will help inspire our employees to pursue volunteer and public service opportunities throughout the year."

Royal Caribbean is busy finishing plans to build its next cruise ship, Quantum of the Seas, and it has tapped design firm 5+design Studio to help create the cutting-edge venues aboard the ship.

Tim Magill, partner of 5+design, commented on designing Quantum of the Seas' venues, "There has never been anything like Two70 on land, let alone sea. It exemplifies our idea of transformational environments – creating the framework for wide range of activities and uses within one space.”

Royal Caribbean has tapped 5+design to create Two70 and Vistarama venues aboard Quantum of the Seas.

During the day, Two70 takes on the ambiance of a grand living room, perfect for games, lounging, reading or early morning coffee. An organic topography of elliptical spaces create a variety of intimate social spaces for friends, families and small groups. At night, Two70, aptly named for its breathtaking 270-degree panoramic sea views through vast, floor-to-ceiling glass walls, gradually transforms into a beacon of spectacular, mysterious and unbarred entertainment for guests to enjoy.

5+design sought to make Two70 an "outside" experience for an inside venue, so the area will also become a place for live performances.  The space was designed with multiple purposes in mind.

A Florida federal judge threw out a lawsuit against Royal Caribbean that alleged fraudulent behavior in which the company's executives were accused of “artificially inflating the company’s stock price by concealing lagging bookings”.

District Judge Kathleen M. Williams said the plaintiffs couldn’t prove the cruise company knowingly took such action, which was specifically over activity in the European and Mediterranean markets.

In addition, the judge said Royal Caribbean was protected by safe harbor provisions under the Private Securities Litigation Reform Act. This is because the firm included forward looking statements in its earnings conference calls and filings with US Securities and Exchange Commission that weren’t boilerplate, which the plaintiff had argued.

“The court finds that these warnings were given in advance of the risks materializing and thus are sufficient to protect defendants under the PSLRA’S safe harbor provision,” Judge Williams said. “Therefore, having found that the allegedly misleading statements were forward looking and were accompanied by meaningful cautionary language, dismissal is appropriate.”

Judge Williams said Royal Caribbean specified in its Form 10-K filings with the SEC that operating internationally brought with it risks of “volatile local political conditions,” the possibility of decreased demand because of “fear of hostilities and resulting political instability” and “effects from “economic or geo-political factors beyond our control.”

“The warnings, which went back to 2009 before the Arab Spring and Japanese tsunami, cautioned investors that the company operated internationally in the travel industry and thus was subject to the uncontrollable factors of political and economic instability and port availability,” Judge Williams said. “Moreover, because the company is a leisure company, its success is dependent on its customers’ financial situations and fluctuating ability to afford vacations in difficult economic times.”

It's been less than a week since Royal Caribbean pulled back the curtain to reveal what its newest cruise ship, Quantum of the Seas, will look like and it has generated a lot of buzz among cruise veterans and people new to cruising alike.  And with the first itineraries to go on sale next month, travel agents are on the front lines of hearing from customers who want to be among the first to get onboard.

Beci Mahnken, owner of MEI-Travel, thinks Quantum of the Seas will have tremendous appeal for first time cruisers, "First time cruisers may be reluctant to leave the options of a land vacation behind, but Quantum of the Seas brings exciting activities and amenities previously only available on land, to sea."

"The excitement and buzz we've heard from clients lets us know this ship will be a great success and a wonderful addition to the Royal Caribbean fleet. Potential cruisers who have been waiting to take a cruise for fear of not enough to do or feeling boxed in, only need to see what Quantum of the Seas has to offer and "prepare to be wowed." First time cruisers will want to cruise on Quantum of the Seas because of the ship itself and the endless options available on board. "

Another travel agent with MEI-Travel, Michelle Cunningham, was also impressed by what Royal Caribbean brings to the table, "I think it’s great that cruise lines reach above and beyond their potential to give clients fun things to do at sea, and I do think Royal Caribbean does it the best. They have the biggest ships in the world and continue to create and push beyond the limits." 

Stephanie Miller is also a fan of what Quantum of the Seas offers and she thinks the ship will be a bigger appeal than the islands that are visited, " In the past cruising was a great way for guests to see multiple destinations on one vacation. With Quantum of the Seas I anticipate that guests will find the ship is the destination."

Kaleigh Lay, who hosts the popular podcast all about cruising Cruize Cast, thinks Royal Caribbean has solidified its position as innovator in the cruise industry, "Royal Caribbean has been the industry leader in introducing the next best thing to the cruise market, and that appeals to first time cruisers. People see the commercials with the zip line, surf simulator and now bumper cars and skydiving on the Quantum of the Seas, and they want to sail on that ship. But, these kinds of innovations get people excited about cruising in general because it plants the idea in their minds."

The decision to homeport Royal Caribbean's newest cruise ship in Bayonne, New Jersey is a question at the top of many people's minds and CEO Adam Goldstein commented on the deployment decision.

Goldstein feels that the New York cruise market is very important to the brand, “It’s an appropriate place to homeport as she begins service."

Some of the new innovations the cruise ship features, such as bumper cars and skydiving, should attract first time cruisers according to Goldstein.

“It should help the perceptions some people may have about the cruise experience,” he said.

Goldstein was very proud of the Music Hall, saying that Royal Caribbean was one of the last to still place an importance on live music – with up to 30 performers sailing with the ship.

When Goldstein was asked if the decision to homeport Quantum of the Seas in the New York area opens up possibilities for new ships going to places other than Florida, he answered that there are more ports the Quantum-class vessels can go in comparison to the Oasis, but not that many.

The success metrics of the new Quantum ships will be measured via revenue generation and yields tied together.

“What people pay to be onboard (is the metric),” Goldstein continued, adding that fuel savings will come from hydrodynamics and the overall shape of the hull, along with changes and innovations to the propellers, the engines, air conditioning, lighting and more.

After officials investigated a suspicious device at the port of Tampa near Royal Caribbean's Jewel of the Seas, it turned out to be a liquor delivery made by a semi-truck transferring items for the cruise line.

"There was no device found, or explosive material found," said Col. Jim Previtera of the Hillsborough County Sheriff's Office, during a press conference Thursday regarding the incident. "We did impound a couple items we removed, and our technicians will look at them."

Officials were alerted earlier today when an unidentified item on the dock near Terminal 3 was found.

As a precautionary measure, officials evacuated workers on the terminal, shore staff and contract security employees.  There were no passengers onboard Jewel of the Seas at the time.

Royal Caribbean will hold a conference call on April 25, 2013 at 10am to discuss its first quarter 2013 financial results.

The call will be available on-line at the company's investor relations web site, www.rclinvestor.com. To listen to the call by phone, please dial (877) 663-9606 in the US and Canada. International phone calls should be made to (706) 758-4628. There is no passcode or meeting number. A replay of the webcast will be available at the same site for a month following the call.

A suspicious package was found today at the Port of Tampa, Florida near Royal Caribbean's Jewel of the Seas.  The Hillsborough Sheriff's office said the suspicious package was found on a pallet that was to be loaded on the cruise ship.

Two bomb-sniffing dogs found the package during a routine inspection.  Explosives experts are now investigating the package and should have an answer to what it is very soon.

As a precaution, the sheriff's office evacuated the terminal building that was being used to check passengers in for their Jewel of the Seas cruise.

Once the package inspection is complete, cruise ship staff will re-board the ship and Terminal 3 will reopen. 

Cruise ship passengers are waiting in the area and are still hoping to board the ship today for their trip to Cozumel. The only thing they've been told is that when the ship's horn blasts, they will be allowed to board.