By Ananya Mariam Rajesh and Doyinsola Oladipo
(Reuters) -Royal Caribbean said on Tuesday that 2025 was shaping up “to be another great year”, with a near 23% jump expected in adjusted earnings, as it benefits from record prices and new river cruise itineraries. Its shares jumped 12% in early trading after the company also forecast full-year adjusted earnings of $14.35 to $14.65 per share, largely above analysts’ estimates of $14.41, according to data compiled by LSEG.
Royal Caribbean said its “WAVE” season — a period at the start of a year when cruise companies offer deals and promotions to drive bookings — was off to a record start, with bookings in line with the prior years despite higher prices.
Cruise operators have succeeded in sustaining strong demand for sea-based vacations by investing millions of dollars in introducing new mega ships and voyages to private destinations.
“Momentum continues in 2025 with bookings accelerating since the last earnings call, resulting in the best five booking weeks in the company’s history,” CEO Jason Liberty said on an analyst call.
Royal Caribbean now plans to expand its offerings with the launch of Celebrity River Cruises, a river cruise vacation that will begin taking bookings this year. It has also committed to an initial order of 10 ships and plans to sail in 2027.
The news sent shares of Viking Holdings, the industry leader in river cruises, down 3% on Tuesday.
“This creates another avenue for growth for RCL, while encroaching on VIK’s bread and butter segment,” said James Hardiman, Citi analyst in a note.
In the fourth quarter, Royal Caribbean’s revenue jumped 13% to $3.76 billion, compared with analysts’ average estimate of $3.77 billion.
It posted adjusted earnings of $1.63 per share, above analysts’ average estimate of $1.50. Net cruise costs, excluding fuel, climbed 13.4%, compared with a 6.2% rise a year earlier.
(Reporting by Ananya Mariam Rajesh in Bengaluru and Doyinsola Oladipo in New York; Editing by Shinjini Ganguli)
