Design work for the next classes of ships across all Royal Caribbean Group brands will focus on disciplined capacity growth, Jason Liberty, president and CEO said during a Q2 earnings call.
Liberty alerted investors that the group will be replacing older ships in the fleet, such as the Grandeur of the Seas, Enchantment, and Rhapsody of the Seas from the Royal Caribbean brand, as well as the Celebrity Millennium from the Celebrity fleet and the 30-year-old Silver Cloud from the Silversea brand.
In addition to future ship orders and fleet planning, Royal Caribbean Group is also committed to addressing its environmental footprint by working to reduce emissions and fuel consumption.
Planning for the new Icon of the Seas ship began around seven years in advance, with considerations including potential smaller ship sizes to accommodate various homeports and transit ports with restrictions.
Revenue at Royal Caribbean exceeded the company’s guidance due to strong demand and improved onboard revenue.
Second quarter results included higher Gross Margin Yields and Net Yields, with a Load factor of 108%, increased Net Income.
The demand for Royal Caribbean Group’s experiences remains strong, with record bookings for future sailings and increased yield expectations driven by higher pricing and onboard revenue, particularly in European and Alaskan itineraries.
Jason Liberty said: “our momentum continues, we met our financial targets 18 months earlier than expected, have our balance sheet in a strong position, reinstated our dividend, and we are just getting started. Exceptional demand for our vacation experiences has accelerated our performance by generating significant yield growth over the past several years.”
