Royal Caribbean Cruises Ltd. reports that its adjusted earnings per share for 2015 rose 42 percent over the previous year, with a further increase projected for 2016.
For 2015 the line also reported that net yields rose 3.5 percent on a constant currency basis (down 1 percent on an as-recorded basis), while net cruise costs (NCC) excluding fuel were down 0.6 percent on a constant-currency basis (down 3.2 percent as-reported), leading to a better-than-expected adjusted net income of $1.07 billion, versus adjusted net income of $755.7 million, in 2014.
The cruise line also reported a rise in adjusted and U.S. GAAP net income for the fourth quarter of 2015 from $70 million to $206.8 million, which Royal Caribbean said was driven by stronger demand in the Caribbean and new China sailings during the winter months.
Looking ahead to 2016, the line said it expects net yields to rise between 2 and 4 percent on a constant currency basis (ranging from flat to 2 percent up as-reported). NCC excluding fuel are expected to be up 1 percent or less on a constant currency basis, or up 0.5 percent as-reported.
2016 will also see Royal Caribbean take delivery of Ovation of the Seas, third in the Quantum class of vessels, in the second quarter. Also debuting during the second quarter is Harmony of the Seas, third in the Oasis class. Splendour of the Seas will leave the Royal Caribbean fleet in April. During the summer, TUI Cruises, the company's German joint venture, will take delivery of its third new build, Mein Schiff 5.
Royal Caribbean also said it expects continued strong demand from North American consumers for Caribbean, Alaska and Bermuda cruises, which represent over 50 percent of the company's capacity for the year. These North American products combined with strong demand for Northern Europe and Asia sailings are expected to more than offset current pricing challenges impacting the Mediterranean, Australia and Brazil, Royal Caribbean said.