Royal Caribbean Cruises said occupancy has rebounded to pre-pandemic levels, with bookings running higher than the third quarter of 2019.
The second-largest cruise operator reported third-quarter results Thursday that surpassed investors’ estimates and said customer demand met 2019 levels for the first time since the COCID-19 pandemic shut down cruises.
“Our business is back,” Chief Executive Officer Jason Liberty said in an interview. “Our load factors are in the mid-90s. We’re inching our way back.”
Occupancy for the third quarter was 96% overall, beating Wall Street estimates of 92%. Adjusted profit came to 26 cents a share, above the 14-cent average of estimates compiled by analysts. Revenue rose to $2.99 billion, compared with analysts’ projections of $2.97 billion.
Despite inflationary headwinds on fuel and food, Royal Caribbean said demand is strong. Its passengers tend to be high earners, with median household incomes greater than $100,000, and are less affected by current consumer spending challenges.
Royal Caribbean expects record yield in 2023, with customers spending more on bookings and on cruises than they did in 2019.
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