The cruise operator raised its adjusted earnings per share forecast to $17.73-$17.87, citing strong demand from higher-income travelers.
Royal Caribbean increased its annual adjusted earnings per share forecast to a range of $17.73 to $17.87, up from $17.10 to $17.50, after surpassing quarterly estimates. Shares rose 5% following the announcement, despite a modest booking decline tied to Middle East conflict disruptions.
The company noted that geopolitical tensions have slightly reduced demand for Mediterranean itineraries, particularly in the third quarter. Revenue growth expectations were trimmed to about 9% from 10%, while higher fuel costs and cautious consumer spending pose challenges.
Strong pricing power and onboard spending, driven by affluent travelers, have helped offset pressures. The shift in bookings from Europe to the Caribbean suggests consumers are delaying or reallocating travel plans rather than canceling them outright.