Royal Caribbean Cruises Ltd (RCCL), the world’s second largest cruise shipping company, says its bookings during the fourth quarter were on par with historical levels, and the company is experiencing a typical Wave season. “Booked load factors are up year-over-year for the second, third and fourth quarter, and flat for the first quarter. Average per diems are ahead of same time last year in all four quarters,” it said in a statement.
The company expects a Net Yield increase of 2% to 3% on a Constant-Currency basis and approximately 2% on an As Reported basis for the full year.
“While the Caribbean continues to feel pricing pressure, strong demand for our other itineraries has more than compensated. In particular, load factors and pricing are up significantly for sailings in Europe and Asia. The overall result is increasing yields despite the remaining overhang from last year’s industry events,” said Jason T. Liberty, chief financial officer.
Net cruise costs (NCC) excluding fuel are expected to be flat to slightly down on a Constant-Currency basis and approximately flat on an As Reported basis – in spite of inflationary pressures, rising insurance costs and continued investment in the product and marketing.
Taking into account current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company currently estimates 2014 Adjusted EPS will be in the range of $3.20 to $3.40 per share.
First quarter yields are expected to be approximately flat on a Constant-Currency basis and down approximately 2% as reported. The first quarter of 2014 is the most difficult comparable due to the timing of last year’s negative media storm and its effect on Caribbean sailings. Yields in the second, third and fourth quarters are expected to be higher due to easier comparables and strong performance on Europe and Asia itineraries.
