Miami-based cruise line operator Royal Caribbean Cruises’ adjusted net income increased to USD 690.9 million in the third quarter of 2016 from USD 628.1 million seen in the same period in 2015.
Being “better than expectations,” the figure is driven by strong yields and positive movements in currency and fuel during the quarter.
US GAAP net income reached USD 693.3 million or USD 3.21 per share for the period, up from USD 228.8 million, or USD 1.03 per share reported in the third quarter of 2015. Last year’s figure includes an impairment charge related to Pullmantur.
“Our business continues to progress solidly to the Double-Double, and our recent dividend increase is evidence of our confidence in that trajectory,” said Richard D. Fain, chairman and chief executive officer.
“It is gratifying to again be headed towards record earnings for the year, above our initial guidance,” he added.
Net yields increased 2.9% during the quarter, better than previous guidance, while continued strength in demand for North American products was a key driver of the outperformance while the balance of the portfolio performed in-line with expectations, according to the cruise line.
Looking ahead to 2017, the company said that its booked position is better than same time last year on both volume and rate, supporting Royal Caribbean’s trajectory to the Double-Double.
New ships including Harmony of the Seas and Ovation of the Seas are seeing strong trends, supporting a solid outlook for 2017.
“Our strong booked position and continued focus on effective cost management is expected to keep full year earnings ahead of initial guidance,” Jason T. Liberty, chief financial officer, said.