Royal Caribbean Group posted a solid annual profit of $1.7 billion following a stellar fourth quarter. Its Q4 net income was $300 million, beating estimates on higher yields with close-in solid demand.
It marked a significant turnaround from a year ago when the company posted a half-billion-dollar fourth-quarter loss.
Full-year revenue was $13.9 billion. The company is upbeat for 2024 after a solid start to Wave season. The first three weeks of Wave were at record levels, and the positive momentum is expected to continue.
Upbeat outlook for 2024
“2023 was an exceptional year, propelled by unmatched demand for our brands from new and loyal guests,” said CEO Jason Liberty. The company’s booked load rates are at record highs, and “2024 is poised to be another robust year,” Liberty added.
“The company is very encouraged about the demand and pricing environment for 2024. Overall, the five best booking weeks in history have occurred since the last earnings call.”
The company is now at a record-booked position for both rate and volume. It says it has half the number of available staterooms right now compared to the same time in 2023. Costs, excluding fuel, are expected to increase during 2024 by about 4%. The company also paid off around $4 billion of debt in 2023.
‘Game changer’ Icon of the Seas Joined the Fleet
Liberty cited positive market response to the landmark launch of the mega-ship Icon of the Seas and the expansion at Perfect Day at CocoCay. Overall fleet capacity is expected to rise 8.5% this year with the scheduled deliveries of Utopia of the Seas and Silversea’s Silver Ray.