Miami-based cruise line operator Royal Caribbean Cruises reported a 60% increase in its second quarter 2017 net income to $369.5 mill, compared to $229.9 mill recorded in 2Q16.
The company’s operating income also increased by 48% in the quarter to $419.6 mill, compared to $282.2 mill reported in the same period of 2016.
Gross yields were up 10.2% on a constant-currency basis, while net yields on a constant-currency basis increased 11.5%, exceeding the company’s previous guidance, due to strong demand driving higher pricing and occupancy.
Net income for the first six months of this year was $584.2 mill, up from $329 mill reported in 1H16. Operating income for the period was $699.2 mill, compared to $445.4 mill in 1H16.
“Our brands are executing beautifully, keeping the business in an exceptionally strong position,” Richard Fain, chairman and CEO, said.“Strong close-in demand for cruise bolstered the quarter, and we see further uplift for the balance of the year, positioning us well for the Double-Double and beyond.”
In addition, the company updated its full year adjusted EPS guidance to a range of $7.35 to $7.45, a $0.30 increase at the middle of this year, versus previous guidance.
Royal Caribbean Cruises said that its booked position for the remainder of 2017 continued to set new records. Looking further ahead, the company’s booked position for the next 12 months was also strong, up on both rate and volume, versus the same time last year.
Net yields for the year on a constant-currency basis are expected to increase by 5.5%- 6%, compared to the previous guidance, due to the better results in the second quarter, as well as stronger trends for the balance of the year.
“Demand has remained strong, and we have captured the related revenue opportunity,” Jason Liberty, executive vice president and CFO, said.“These demand trends and continued cost discipline have resulted in the highest second quarter earnings in company history and have put us in position for another record year and achieving our Double-Double targets.”
