Royal Caribbean raises earnings forecast for 2019

Photo Credit: Tom Stieghorst

Royal Caribbean Cruises Ltd. (RCCL) raised the midpoint of its forecast for 2019 earnings by $31 million after reporting higher second-quarter net income.

The company said it earned $472.8 million in the quarter ended June 30, up from $466 million in the same period a year earlier. Revenue rose to $2.81 billion from $2.34 billion.

The stronger quarter and the outlook for an improved second half led RCCL to increase its projection for earnings in 2019 to between $2 billion and $2.02 billion.

"We are elated to see our brands executing so effectively, keeping our business in an exceptionally strong position," Richard Fain, RCCL's chairman and CEO, said in a statement about the results. 

"Our strategic focus on destinations, technology and people is clearly paying off," he said. "And our core products are doing exceptionally well, driven by a gratifyingly robust demand for the Caribbean."

RCCL said increased demand for onboard experiences as well as strong close-in demand for core products fully offset the impact from the Trump administration's new policy of barring U.S. cruises to Cuba (implemented June 5). 

RCCL also said lower interest expense contributed to the second quarter's positive performance.

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