‘Excellent’ close-in demand buoys Royal Group’s Q1 results
Royal Caribbean Group (RCG) has reported ‘better than expected’ Q1 results thanks to strong pricing on close-in demand and lower operational costs
According to financial results covering the three months to 31 March 2025, the company, which owns Royal Caribbean International, Silversea and Celebrity Cruises, will increase its earning expectations for the rest of the year due to positive Q1 revenue performance, favourable exchange rates and lower fuel costs.
“Our strong first quarter results are a testament to the enduring appeal and attractive value proposition of our leading brands and the incredible vacations they deliver,” said Jason Liberty, RCG president and CEO.
“As we navigate the complexities of the current macroeconomic landscape, we remain focused on what we can control – delivering the best vacation experiences, optimising revenue, and managing costs, while continuing to invest in our future and drive further differentiation.
“With our industry-leading brands, state-of-the-art ships, exclusive destinations, and a fortified balance sheet, we will continue dreaming and innovating to win a greater share of the growing $2 trillion global vacation market.”
During the first quarter, the company reported record wave period business. In April, bookings were greater than the same period last year, including continued strength in close-in bookings.
Guest spending onboard and pre-cruise purchases continue to exceed prior years due to greater participation at higher prices. To account for broader external factors, the company has expanded its guidance ranges in response to the “complexity of the current macroeconomic landscape”.
“Bookings for 2025 have remained on track, cancellation levels are normal, and we continue to see excellent close-in demand” Liberty added.
“This year continues our guest experience innovation with the debut of Star of the Seas, Celebrity Xcel, and the opening of Royal Beach Club Paradise Island by year-end – all of which continue to generate consumer excitement and strengthen our competitive moat.”
Net income for the first quarter of 2025 was $0.7 billion compared to $0.4 billion for the same period last year, while capacity was up 3 per cent with the company carrying 2.2 million guests.
Capacity in the second quarter is expected to increase to 6 per cent, driven by lower dry dock days and a full-year of Utopia of the Seas, compared to second quarter 2024.
