Despite Tumultuous Macroeconomic Landscape, Royal Caribbean Group Rides Wave of Success In Q1

Royal Caribbean Group has reported strong first quarter results that exceeded the company’s guidance due to stronger than expected pricing on close-in demand.

“Our strong first quarter results are a testament to the enduring appeal and attractive value proposition of our leading brands and the incredible vacations they deliver,” said Jason Liberty, president and CEO, Royal Caribbean Group. 

“As we navigate the complexities of the current macroeconomic landscape, we remain focused on what we can control — delivering the best vacation experiences, optimizing revenue, and managing costs, while continuing to invest in our future and drive further differentiation.”

First Quarter 2025 Highlights: 

Load factor: 109%.

Gross Margin Yields: Up 13.9% as-reported. 

Net Yields: Up 4.7%, 5.6% in constant currency.

 Total revenues were US$4.0 billion.

Net Income: US$0.7 billion. 

Adjusted EBITDA was US$1.4 billion.

Capacity: Up 3% year-over-year.

Total Guests: 2.2 million, a 9% increase year-over-year.

During Q1, the company took record bookings during WAVE season. Additionally, during April, the company’s bookings were greater than the same period last year, including continued strength in close-in bookings. 

Booked load factors remain in line with prior years and at higher rates. Guest spending onboard and pre-cruise purchases continue to exceed prior years driven by greater participation at higher prices. To account for broader external factors, the company has expanded its guidance ranges in response to the complexity of the current macroeconomic landscape.

“Bookings for 2025 have remained on track, cancellation levels are normal, and we continue to see excellent close-in demand” said Liberty. 

“This year continues our guest experience innovation with the debut of Star of the Seas, Celebrity Xcel, and the opening of Royal Beach Club Paradise Island by year-end – all of which continue to generate consumer excitement and strengthen our competitive moat.”

Capacity in the second quarter is expected to increase 6%, driven by lower dry dock days and a full year of Utopia of the Seas, compared to second quarter 2024. 

As of March 31, 2025, the company’s liquidity position was $4.5 billion, which includes cash and cash equivalents and undrawn revolving credit facility capacity.

During the quarter, the company was upgraded to investment grade by S&P Global Ratings, reflecting the strength of its financial position, consistent performance, and disciplined capital allocation strategy.

Capacity changes for 2025 are expected to be 5.5% compared to 2024. Capacity changes for 2026, 2027, and 2028 are expected to be 6%, 5%, and 6%, respectively. These figures do not include potential ship sales or additions that the company may elect in the future.