Royal Caribbean lifts 2025 profit outlook on strong cruise demand
Cruise giant Royal Caribbean raised its annual profit forecast on Tuesday, buoyed by steady demand for its premium sailings and exclusive private island experiences. The update comes even as rising fuel prices weigh on the company’s near-term earnings.
The company now expects fiscal 2025 adjusted earnings between $15.41 and $15.55 per share, up from its previous guidance of $14.55 to $15.55, News.Az reports, citing Reuters.
Despite the upbeat full-year outlook, Q3 guidance fell short of Wall Street expectations, with Royal Caribbean forecasting earnings of $5.55 to $5.65 per share, below the $5.83 estimate compiled by LSEG.
Shares of Royal Caribbean were down about 3% in premarket trading, though the stock has surged over 50% year-to-date, reflecting investor confidence in the broader cruise recovery.
The company’s ability to maintain pricing power — especially for premium itineraries and access to private island destinations — has helped offset macroeconomic pressures and higher operating costs.
Royal Caribbean’s performance is seen as a bellwether for the cruise industry, which has experienced a robust post-pandemic rebound. Despite lingering headwinds, demand continues to outpace expectations, particularly in the luxury and adventure travel segments.
The company operates some of the world’s largest cruise ships, including the "Wonder of the Seas", and has heavily marketed its Perfect Day at CocoCay private island in the Bahamas as a top-tier experience for travelers.
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