Royal Caribbean Group sees the figures turn black in 2023

The result compares with a net loss of £2.2 billion in 2022 and a deficit of $5.3 billion in 2021. 

Total passenger revenues rose from $8.8 billion to $13.9 billion year on year after passenger numbers of 7.6 million outstripped the 2019 figure of 6.5 million for the first time.

Net income for the final quarter of 2023 reached $300 million, compared with a net loss of $500.2 million for the fourth quarter of 2022. RCG said the results were better than guidance given to analysts due to “stronger close-in demand”.

RCG’s president and chief executive Jason Liberty added: “2023 was an exceptional year, propelled by unmatched demand for our brands from new and loyal guests. With the wind in our sails and record-breaking bookings, 2024 is poised to be another robust year.”

RCG operates 65 ships and owns Royal Caribbean International, Celebrity Cruises and Silversea Cruises. It is also a 50% owner of a joint venture that operates Tui Cruises and Hapag-Lloyd Cruises.

The brand said gross margins had increased in the calendar year 2023 by 13.2% compared with 2019, with costs including fuel up almost 11%.

Looking at 2024, RCG said wave season “is off to a record start”, adding: “Booked load factors and rates are higher than all prior years.”

“The company is very encouraged about the demand and pricing environment for 2024,” it said.

“Overall, the five best booking weeks of the company’s history have occurred since the last earnings call, including the first three weeks of wave. As a result, the company is now in a record booked position in both rate and volume.

“The market response to the company’s new ships, particularly Icon of the Seas, existing hardware and the expansion of Perfect Day at CocoCay with Hideaway Beach has been excellent and further positions the company for strong yield and earnings growth in 2024.” 

The company expects to take delivery of Utopia of the Seas and Silver Ray in 2024, with a resulting 8.5% increase in capacity compared to 2023. Capacity for 2025 is expected to be up 5%.