Miami-based cruise major Royal Caribbean Cruises closed the quarter ended June 30, 2019, with record second-quarter earnings.
US GAAP net income for the quarter was USD 472.8 million, compared to USD 466.3 million posted in Q2 2018.
In addition, adjusted net income stood at USD 532.7 million in the second quarter of 2019, against USD 482.2 million seen in the corresponding three-month period a year earlier.
As explained, the improvement over last year was mainly driven by increased revenue from Royal Caribbean’s global brands.
“We are elated to see our brands executing so effectively, keeping our business in an exceptionally strong position,” Richard D. Fain, chairman and CEO, pointed out.
The overall positive results were achieved despite the United States’ decision to ban cruise ships from docking in Cuba, preventing group tours and cruise ship stops to the island nation.
“Better demand for onboard experiences as well as strong close-in demand for our core products fully offset the impact from the travel restrictions to Cuba which equated to 30 basis points for the quarter,” according to the company.
Due to an increase in costs related to the travel restrictions to Cuba, current fuel pricing, as well as other factors, Royal Caribbean estimates 2019 adjusted EPS to be in the range of USD 9.55 to USD 9.65 per share.
“The company’s booked position for the remainder of 2019 continues to set new records with all core products in line or ahead of the company’s previous expectations,” Jason T. Liberty, executive vice president and CFO, commented.
“While it is too early to provide detailed color on 2020, we are delighted that bookings are already off to a very strong start.”
Royal Caribbean Cruises controls and operates four brands including Royal Caribbean International, Celebrity Cruises, Azamara and Silversea Cruises. It is also a 50% joint venture owner of the German brand TUI Cruises and a 49% shareholder in the Spanish brand Pullmantur Cruceros. Together, these brands operate a combined total of 63 ships with an additional 13 on order as of June 30, 2019.