Royal Caribbean Group beat analysts’ estimates and achieved record bookings for its fourth quarter, but returned into the red because of higher operating costs.
It posted a net loss of $500m for the final three months of 2022, versus a $1.36bn net loss a year earlier. These results translated into a $1.96 loss per share for the quarter against a year-ago loss per share of $5.33.
The company posted its first net profit of $33m during the third quarter, ending a streak of nine consecutive quarterly losses at the hands of a pandemic that shut down the entire cruise sector in March 2020.
On an adjusted basis, the Miami-based cruise behemoth recorded a net loss of $285m for the fourth quarter, compared with a net loss of $1.22bn for the same period of 2021.
It registered an adjusted loss per share of $1.12, beating analyst consensus of a $1.34 loss per share and the year-ago loss per share of $4.78.
Royal Caribbean’s fourth-quarter revenue improved to $2.6bn from $982m a year earlier, but it had much higher operating expenses of $1.78bn versus $1.14bn for the final three months of 2021.
The owner offset those higher costs by achieving seven consecutive weeks of weekly record bookings during the latter half of the fourth quarter as a result of pent-up demand.
As of 31 December 2022, Royal Caribbean’s customer deposit balance was a record $4.2bn, while passenger loads were in line with overall guidance at 95%.
“Leisure travel strength continues as consumer spend is shifting towards experiences, with cruising remaining an attractive value proposition,” chief executive Jason Liberty said.
“The quality demand trends further exhibit the strength of our brands and the growing propensity to cruise.
“2022 was a pivotal year as we successfully returned our business to full operations and delivered memorable vacation experiences to 6m guests.”
The company expects to post record bookings for all four quarters of 2023 but register an adjusted loss per share of between $0.65 and $0.85 for the first quarter and posting full-year adjusted earnings per share of $3 to $3.60.
For the full year, it reported a net loss of $1.26bn, against a net loss of $5.3bn for 2021. On an adjusted basis, Royal Caribbean reported a net loss of $1.9bn, down from $4.8bn.
As of 31 December, Royal Caribbean had $2.9bn in liquidity but it still has $21.3bn in long-term debt, up from $18.9bn at the end of 2021.
