Royal Caribbean Group today reported first quarter Earnings per Share of $3.48 and Adjusted EPS of $3.60.

The company said these results were better than the company’s guidance due to more favorable revenue, lower costs, and better performance from joint ventures.

During the first quarter, the company returned approximately $1.1 billion to shareholders through $836 million of share repurchases and $270 million of dividend payments. Following a record WAVE season, the company continues to see strong demand across its vacation portfolio.

Bookings moderated in March and early April for Mediterranean and West Coast of Mexico itineraries due to geopolitical developments. However, they have now recovered and are currently running at a higher pace than the same time last year. The company now expects Adjusted EPS to be in the range of $17.10 to $17.50. The updated guidance reflects higher than anticipated fuel costs (based on current at-the-pump rates) and an impact on Middle Eastern itineraries of TUI Cruises from geopolitical events, as well as lower non-fuel costs and the benefit from recent share repurchases.

“Our strong first quarter results and record WAVE season demonstrate the exceptional appeal and compelling value proposition of our trusted brands, industry-leading ships, and destinations,” said Jason Liberty, Chairman and CEO, Royal Caribbean Group. “Demand for our experiences continues to be strong, and we remain focused on delivering the best vacations responsibly, accelerating revenue growth, and managing costs, all while continuing to invest in our future and drive further differentiation. We expect another year of double-digit revenue and earnings growth, driven by consumers’ preference for our leading brands and expanding portfolio – all supported by our strong booked position, leading margin profile, and fortified balance sheet.”

“We continue to execute on our innovation pipeline and broaden our vacation ecosystem in ways that further strengthen our long-term growth trajectory,” Liberty added. “We are expanding our portfolio through the recent launch of Royal Beach Club Santorini, the upcoming delivery of Legend of the Seas, and the recent orders for Icon VI and Icon VII. Of particular note are the steps we are taking to enhance our loyalty ecosystem, including the recent introduction of the Royal ONE credit card. This is one further step to deepen guest engagement and to position us to capture a greater share of the large and growing global vacation market.”

First Quarter 2026:

• Total revenue was $4.5 billion, an 11% increase year over year. Load factor in the first quarter was 109%.
• Gross Margin Yields increased 6.9% as-reported. Net Yields increased 3.6% as-reported and 2.0% in Constant Currency.
• Gross Cruise Costs per Available Passenger Cruise Days (“APCD”) decreased 1.0% as-reported. Net Cruise Costs (“NCC”), excluding Fuel, per APCD increased 0.6% as-reported and decreased 0.5% in Constant Currency.
• Net Income was $0.9 billion or $3.48 per share, Adjusted Net Income was $1.0 billion or $3.60 per share, and Adjusted EBITDA was $1.7 billion.

Full Year 2026 Outlook:

• Revenue is expected to grow roughly 10% year over year. Net Yields are expected to increase 2.3% to 3.3% as-reported and 1.5% to 2.5% in Constant Currency, driven by recent geopolitical developments which affected Mediterranean and West Coast of Mexico itineraries.
• NCC, excluding Fuel, per APCD are expected to increase approximately 0.5% as-reported and be approximately flat in Constant Currency.
• Fuel costs, based on current at-the-pump rates, net of hedging, are expected to be approximately $1.3 billion, or $0.62 per share higher than prior guidance. The company is 59% hedged for the remainder of 2026 at below market rates.
• Adjusted EPS is expected to be in the range of $17.10 to $17.50, representing 11% year over year growth, and a 21% CAGR over the first two years of the company’s Perfecta program, which targets a 20% earnings CAGR from 2024 to 2027 and ROIC in the high teens by 2027.

First Quarter 2026 Results

Net Income for the first quarter of 2026 was $0.9 billion or $3.48 per share compared to Net Income of $0.7 billion or $2.70 per share for the same period in the prior year. Adjusted Net Income was $1.0 billion or $3.60 per share for the first quarter of 2026 compared to Adjusted Net Income of $0.7 billion or $2.71 per share for the same period in the prior year. The company also reported total revenues of $4.5 billion and Adjusted EBITDA of $1.7 billion.

Capacity for the first quarter was up 8% year over year and the company delivered memorable vacations to 2.5 million guests, a 12% increase year over year. Total revenue increased 11% year over year. Gross Margin Yields increased 6.9% as-reported, and Net Yields increased 3.6% as-reported (2.0% in Constant Currency), when compared to the first quarter of 2025. Load factor for the quarter was 109%. Net Yield growth exceeded the company’s guidance mainly due to higher pricing across key products driven by strong close-in demand and onboard revenue.

Gross Cruise Costs per APCD decreased 1.0% as-reported, compared to the first quarter of 2025. NCC, excluding Fuel, per APCD increased 0.6% as-reported (and decreased 0.5% in Constant Currency), when compared to the first quarter of 2025.

Update on Bookings and Onboard Revenue

The overall demand environment remains strong, and during April, bookings continued to exceed the same period last year, including continued strength in close-in bookings. As a result, the company’s booked position enjoys record prices with volumes within historical ranges. Bookings for high-yielding Mediterranean itineraries, which began the year on an exceptionally strong trajectory, moderated following recent geopolitical developments late in the first quarter, partially driven by increased air travel costs, airline capacity reductions, and flight disruptions. In recent weeks, bookings for Mediterranean itineraries have been rebounding for the limited remaining inventory. These factors mainly affect the second and third quarters when these high-yielding itineraries represent a larger share of deployment. Bookings for West Coast of Mexico itineraries also moderated during the quarter, reflecting geopolitical-related considerations specific to that region.

Onboard revenue trends remain strong, with onboard spending continuing to exceed prior‑year levels. This is driven by both guests’ growing demand for onboard and destination experiences and the company’s continued expansion of product offerings both on ship and at destinations. These trends are also supported by more effective and targeted engagement, ensuring the right experiences are matched with the right guests.

“Demand for our vacations remains healthy, with consumers continuing to prioritize experiences even as they navigate the impact of global events,” said Naftali Holtz, Chief Financial Officer, Royal Caribbean Group. “Travel remains a priority for consumers, with guests becoming more selective and value‑focused in how and where they choose to travel. That dynamic aligns well with the attractive value proposition of our experiences, which is why we have done so well historically, even during times of uncertainty.”

Second Quarter 2026

Net Yields are expected to increase approximately 0.9% as-reported and approximately 0.2% in Constant Currency as compared to 2025. The second quarter has higher exposure to higher-yielding itineraries affected by recent global events, with these dynamics also impacting the third quarter.

NCC, excluding Fuel, per APCD, is expected to increase 4.9% to 5.4% as-reported and 4.6% to 5.1% in Constant Currency as compared to 2025. Second quarter cost growth is impacted by significantly increased drydock days year over year, as well as elevated crew movement costs.

Based on current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company expects second quarter Adjusted EPS to be in the range of $3.83 to $3.93. Adjusted EPS growth for the second quarter would have been approximately 11% excluding geopolitical impacts and other items affecting year-over-year comparability, including the timing of drydocks.

Fuel Expense

Bunker pricing, net of hedging, for the first quarter was $613 per metric ton and consumption was 432,000 metric tons.

The company does not forecast fuel prices and its fuel cost calculations are based on current at-the-pump prices, net of hedging impacts. Based on current fuel prices, the company has included $346 million of fuel expense in its second quarter guidance at a forecasted consumption of 423,000 metric tons, which is 60% hedged via swaps. For the full year, the company expects fuel expense to be approximately $1.3 billion based on current at-the-pump prices, net of hedging impacts; however, fuel expense would be approximately 4% lower if rates were based on the forward curve.

Forecasted consumption is 59%, 49%, 30%, and 15% hedged via swaps for 2026, 2027, 2028, and 2029 respectively. The annual average cost per metric ton of the hedge portfolio is approximately $475, $408, $424, and $451 for 2026, 2027, 2028, and 2029 respectively.