Royal Caribbean’s 2024 Profit Outlook Strong Thanks to Robust Bookings

Royal Caribbean Group has outperformed profit expectations for the fourth quarter of 2023, with strong demand for cruise travel and higher ticket prices contributing to its success. The company has forecasted a profitable 2024, with increased bookings compared to pre-pandemic levels allowing for a rise in ticket prices. The fourth-quarter revenue for the cruise company rose by nearly 28%, exceeding analyst forecasts. Despite this positive outlook, the occupancy rate remains below 2019 levels.

Royal Caribbean’s adjusted earnings per share for the quarter were $1.25, surpassing estimates of $1.13 per share. Its operators, Celebrity and Silversea Cruises, carried over 7.6 million passengers in 2023, a 17% increase from pre-pandemic levels. Additionally, Royal Caribbean’s forecasted adjusted profit for 2024 is between $9.50 and $9.70 per share, exceeding estimates of $9.19 per share. This positive outlook has also impacted the stock market, with shares of rival cruise lines Norwegian Cruise Line and Carnival seeing an increase in value.

The surge in demand for cruises and the ability to raise ticket prices has contributed to Royal Caribbean’s strong performance. The company’s outlook for 2024 is optimistic, with the potential for significant profit growth. This positive news has also impacted its competitors, with shares of rival cruise lines Norwegian Cruise Line and Carnival seeing an increase in value.

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