Royal
Caribbean Cruises Ltd. said that strong close-in demand for the Caribbean and
increased onboard revenue drove up net yields 7% in
the first quarter, excluding currency effects.
In
a statement, CFO Jason Liberty said that the Q1 results were giving the
company momentum that "is more than offsetting some headwinds from the
Mediterranean."
"This
performance is positioning us for the highest earnings in company
history," he said.
The
company more than doubled its net income in the first quarter, to $99.1
million. Revenue was up 5.6%, to $1.92 billion. Adjusted net income was $124
million, up from $45.2 million in Q1 2015. RCCL said that close-in
Caribbean demand and better-than-expected onboard spending on beverages and
internet were responsible for most of the improvement.
Looking ahead to the rest of 2016, RCCL said that the company's booked position
was "strong," elaborating that it was "well ahead" of last year excluding China, where close-in
booking trends make comparisons tougher.
Net yields for 2016 overall are expected to increase 2.5% to
4%, and RCCL increased its earnings-per-share guidance by 25 cents.
"Strong first-quarter revenue results, combined with
strong demand trends for North American products, is more than offsetting
weaker demand for Mediterranean sailings from the North American
consumer," the company said.