Royal Caribbean Cruises, Ltd (RCCL), the world’s second largest cruise shipping group, says its booked position for the remainder of 2016 remains strong, similar to last year's record levels. 

However, it notted that a strong North America compensated for weakness in Eastern meditrrranean and in Shanghai – the first time Cruise Business Online learns a major cruise shipping group reports a soft market in China.

“Looking further ahead, the company's booked position for the next twelve months is also strong, up on both rate and volume, versus same time last year.  Net Yields on a Constant-Currency basis are expected to increase in the range of 4.0% to 4.5%, driven primarily by the deconsolidation of the Pullmantur Group,” it said in a statement. 

“Continued strength for North American products are helping offset weakness in the Eastern Mediterranean and in Shanghai,” the company pointed out.

Net cruise costs, excluding fuel are expected to be up approximately 1.0% for the year.  This includes a slight increase in this cost metric driven by the deconsolidation of the Pullmantur Group offset by a slight decrease in costs from the rest of the fleet.

"While there are always puts and takes in our key markets, our portfolio is performing as expected, our booked position remains strong, and our newbuilds are entering their markets to great fanfare," said Jason T. Liberty, chief financial officer.  "These factors are driving another year of record earnings."

Taking into account current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company expects 2016 Adjusted EPS to be in the range of $6.00 to $6.10 per share.

 

  • Net Yields are expected to increase in the range of 4.0% to 4.5% on a Constant-Currency basis (up approximately 2.0% As-Reported) with the increase from previous guidance driven primarily by the deconsolidation of the Pullmantur Group.
  • Net Cruise Costs, excluding fuel are expected to be up approximately 1.0% on a Constant-Currency basis (up flat to up 1.0% As-Reported), unchanged from previous guidance. This includes a slight increase in this cost metric driven by the deconsolidation of the Pullmantur Group.
  • Adjusted EPS is expected to be in the range of $6.00 to $6.10 per share, a $0.20 decrease from the mid-point of the company's previous guidance, driven by a negative $0.27 impact of currency and fuel rates, partially offset by the better than expected second quarter.

"Our business remains strong and we continue to improve our return profile," said Richard Fain, chief executive officer.  "This keeps us solidly on our path towards the Double-Double."