Royal Caribbean Group, the world’s second largest cruise shipping group, recorded a small operating profit in the final quarter of 2022, while the figure for the full year as well as net result for both the last three months and full year 2022 showed much reduced losses.

The group made an operating profit of $15.4 million in the fourth quarter of 2022 compared to a loss of $1,031.7 million a year earlier. Net loss was reduced to $500.2 million from $1,356.9 million, while revenues soared to $2,603.9 million from $982.2 million.

For the full year 2022, the company reported a net loss of $2,155.9 million compared to a loss of $5,260.5 million in 2021. Operating loss narrowed to $763.9 million from $3,870.9 million as revenues increased to $8,840.5 million from $1,532.1 million.

"2022 was a pivotal year as we successfully returned our business to full operations and delivered memorable vacation experiences to 6 million guests," said Jason Liberty, president and chief executive officer, Royal Caribbean Group. "We also returned to positive Adjusted EBITDA and Operating Cash Flow by consistently growing revenue and controlling costs. Our teams have worked tirelessly to deliver the best vacation experiences, responsibly, and we are grateful for their extraordinary efforts,” he said in a statement.

Fourth Quarter 2022:

Load Factors were in line with guidance at 95%, with Caribbean sailings reaching 100%, and holiday sailings close to 110%.

Total revenues per passenger cruise day were up 3.5% as-reported and 4.5% in Constant Currency, compared to the fourth quarter of 2019.

Total revenues were $2.6 billion, Net Loss was $(500.2) million or $(1.96) per share, Adjusted Net Loss was $(284.9) million or $(1.12) per share, and Adjusted EBITDA was $409.3 million.

Full year 2022:

Load Factors were 85% overall, full fleet back in operation since June of 2022.

Total revenues were $8.8 billion, Net Loss was $(2.2) billion or $(8.45) per share, Adjusted Net Loss was $(1.9) billion or $(7.50) per share, and Adjusted EBITDA was $711.6 million.

Gross Cruise Costs per APCD increased 4.9% as-reported and 5.8% in Constant Currency, compared to the fourth quarter of 2019. NCC, excluding Fuel, per APCD increased 3.9% as-reported and 4.7% in Constant Currency, compared to the fourth quarter of 2019. 

Gross Cruise Costs per APCD and NCC, excluding Fuel, per APCD for the fourth quarter included $1.23 per APCD related to health protocols and one-time lagging costs related to fleet ramp up. 

The group expects transitory costs related to health protocols and ramp up of operations to be largely gone in 2023 as the majority of crew have returned and protocols have eased. In the fourth quarter, the company continued to benefit from multiple actions taken to reshape its cost structure and to help partially offset inflationary and supply chain challenges.

"Fourth quarter results reflect the continued strong demand for our vacation experiences and our teams' ability to manage costs in a complicated environment while staying focused on delivering the best vacation experiences expected by our guests," said Naftali Holtz, chief financial officer, Royal Caribbean Group. "The benefit from multiple actions we have taken during the last few years to improve margins continue to yield results, as we focus on executing our proven formula of moderate yield growth and strong cost controls."

The company recorded a loss contingency of $130 million in the fourth quarter related to a Helms-Burton Act claim which the company continues to vigorously defend, it said.