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Royal Caribbean increases annual profit forecast due to strong demand; share prices jump

Royal Caribbean announced a profit forecast above Wall Street expectations on Thursday. This was due to the strong demand from wealthy travelers, and an excellent start to a busy booking season.

Royal Caribbean shares jumped by about 16% in early trading as the cruise operator forecasts double-digit revenue increases for 2026.

Royal Caribbean reported that the first Wave weeks, which is the period from January to March when cruise operators offer exclusive deals and promotions, were some of its best ever. This was because wealthy customers are continuing to prioritize sea-based holidays.

Jason Liberty, CEO of WAVE said that the company is off to an excellent start. We continue to see a growing preference for leading brands and unique vacation experiences.

Royal Caribbean announced that two-thirds (or a record) of its capacity for 2026 has already been booked at record prices. They also said that pre-cruise and onboard purchases are still ahead of previous years.

To attract more passengers and increase onboard spending, the company has invested in a number of new ships and exclusive destinations on land. These include the Royal Beach Club Santorini as well as expanded itineraries for "Star of the Seas", "Celebrity Xcel" and other "Star of the Seas".

Royal Caribbean announced that it has signed new agreements with France's Chantiers de l'Atlantique to build its upcoming Discovery Class ships and said Celebrity Cruises would add 10 additional river ships.

In the morning, Norwegian Cruise rose 9% and Carnival 6.6%. Viking Holdings also rose 3.8%.

In December, Carnival Corp. also raised its profit forecast for the year based on a similar strategy of higher ticket prices and resilient demand.

Royal Caribbean's adjusted earnings per share (EPS) for the first quarter is expected to be in a range between $3.18 and $3.28. This is higher than analysts' expectations of $2.91. Fuel expenses are expected to be $1.17 billion for the full year.

LSEG data shows that it forecasts a profit adjusted per share of between $17.70 to $18.10 for fiscal 2026, compared to analysts' expectations at $17.66.

Revenues for the fourth quarter increased by about 13%, to $4.26billion from a year ago. (Reporting by Sanskriti Shekhar in Bengaluru ; Editing by Tasim Zahid)

(source: Reuters)