Royal Caribbean Cruises Ltd. said it raised its forecast for 2012 earnings by 15 cents a share to between $1.85 and $1.95 a share.
The Miami-based cruise line reported earnings in 2011 of $2.77 a share.
It said the improved outlook was a combination of better revenues and lower expenses.
"Strong close-in demand and our focus on costs drove substantially better results than expected. I am especially gratified that we are still seeing price increases in a year marked by so many external pressures," Chairman Richard Fain said during an earnings call on Thursday.
For the third quarter, Royal earned $367.8 million, or $1.68 a share, compared to $399 million, or $1.82 a share a year ago. Revenue for the quarter was $2.2 billion compared to $2.3 billion a year ago. For cruise news, follow Tom Stieghorst on Twitter @tstravelweekly.