Royal Caribbean Group reports "exceptional” Q3 results of $4.9B in revenue

Things seem to be shipshape at Royal Caribbean Group as the cruise company shared its third quarter results on Tuesday (Oct. 29), reporting $4.89 billion in total revenue, blowing expectations out of the water.

The company's net income for the third quarter was $1.1 billion, compared to $1.0 billion for the same period last year.

The quarter was driven by strong demand at higher prices for its cruises to private destinations, as well as its European and Alaskan vacations. The company also made more money by selling add-ons, such as drink packages, Wi-Fi, shore excursions, and other things.

"Consumer spending onboard, as well as pre-cruise purchases, continue to significantly exceed 2023 levels driven by greater participation at higher prices," the company said in a statement.

Royal Caribbean Group President and CEO Jason Liberty noted the robust earnings: "Our exceptional third quarter results and increased full year expectations reflect the robust demand for our differentiated vacation experiences,” he said in a statement.

"We see elevated demand patterns continuing as we build the business for 2025, and although the yield comparable will be a high bar, our proven formula of moderate capacity growth, moderate yield growth and strong cost discipline is expected to continue to deliver strong financial results." 

"While we are still very early in the planning process, we anticipate earnings per share in 2025 to start with a $14 handle."

Developments at sea

This quarter has seen several exciting announcements from the Group, including the expansion of its Perfect Day private destinations portfolio with Perfect Day Mexico, the world’s southernmost hotel in Chile for Silversea Antarctica expedition guests, and a fourth ship on order for its new Icon Class ships – with options for a fifth and sixth.

READ MORE: Royal Caribbean to open “Perfect Day Mexico” in 2027

“We continue to bet on the long-term future of our company and invest in innovative new vacation experiences at sea and on land. Our strategic initiatives are paying off, and consumers are responding by increasingly choosing our brands over other vacation alternatives,” Liberty wrote on LinkedIn.

The CEO said bookings for 2025 are “already surging.”

“This is a pivotal moment in our history – a time to harness our momentum to shape the future of vacations and win a greater share of the broader $1.9T vacation industry. We are the best in the world at delivering the vacation of a lifetime and we are building the capabilities to deliver a lifetime of vacations,” Liberty said.

Worth noting is that this quarter saw Royal Caribbean Group return to its pre-COVID unsecured balance sheet, which includes its assets, liabilities, and owner's equity.

The company has spent several months paying back loans, refinancing loans, and structuring its debt so operations remain unhindered.

Royal Caribbean expects 2024 adjusted earnings per share of $11.57 to $11.62, compared with its earlier expectation of between $11.35 and $11.45.

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