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Looking Good: Revenue Up for Royal Caribbean in Second QuarterJuly 23, 2010 By: David Eisen
Good news on the earning front for Royal Caribbean Cruises Ltd. The cruise line reported net income of $60.5 million for the second quarter 2010, up from a loss of $35.1 million a year ago at the same time.
"What a difference a year makes," Chairman and CEO Richard Fain said in a statement. "Despite ongoing uncertainty with the economy, our profitability continues to improve and our booking environment continues to be remarkably stable."
The company said business conditions are ripe and demand is ticking upward. "Demand for our cruises remains on track with our earlier projections," said CFO Brian Rice. "The strengthening of the U.S. dollar will clearly result in a reduction of our reported yields, but also provides a corresponding reduction in expenses. Most importantly, our continued focus on cost controls and efficiency is driving improved earnings."
Meanwhile, it appears that cruise fares are also on their way back upward. According to Royal Caribbean International CEO Adam Goldstein, pricing is about a third of its way back to where it was before the economic downturn.
According to USA TODAY, "Goldstein said improving demand and bookings from both North America and Europe were contributing to the recovery in pricing."