Carnival and Royal Caribbean cruise higher as tourists take to seas
Last updated: 14:45 22 Feb 2024 EST, First published: 14:40 22 Feb 2024 EST
Two of the world’s premier cruise liner commanders are charting clear waters on both sides of the Atlantic.
In the US, Royal Caribbean Cruises Ltd (NYSE:RCL), the company behind the world’s largest luxury vessel Icon of the Seas, penned a 6% gain on its share price thanks to a buoyant post-market annual earnings call.
Royal Caribbean raised its profit outlook after bumper bookings sent total revenues over 57% higher to $5.1 billion for the 2023 reporting year.
Passenger ticket revenues comprised a little over two-thirds of sales, with the remainder sourced from on-board ancillary services.
In a clear sign of a rebound in tourist demand, total occupancy rates increased by 20.5% year on year.
"Since our last earnings call, robust demand for our vacation experiences has significantly exceeded our initial expectations," said Jason Liberty, president and CEO of Royal Caribbean. "As a result, we are increasing our 2024 guidance on stronger revenue outlook.”
Full-year adjusted earnings per share (EPS) is tipped for $9.90 to $10.10.
Royal Caribbean is preparing to roll out its next Oasis-class cruise liner, the Utopia of the Seas, in the second quarter.
The cruiser’s shares pulled forward 7% to $122.89 thanks to this sunny outlook.
In London, FTSE 250-listed global cruise operator Carnival PLC (LSE:CCL) shares basked in the optimistic outlook for the cruise industry, rallying 6.5% to 1,124p.
Carnival’s latest earnings were bullish in their own right, having posted record revenues over the 2023 financial year, buoyed by strong appetite for travel demand for its cruises.
Revenue for the full year jumped by 77% to US$21.6 billion, as the company outperformed previous years in each quarter.
Carnival has signed an agreement with leading German shipbuilder Meyer Werft to build a fourth Excel-class cruise ship for its namesake Carnival Cruise Line brand.
