Key facts
- Royal Caribbean reduced its 2026 revenue growth forecast to approximately 9% from 10%.
- The company increased its annual adjusted profit forecast to a range of $17.73 to $17.87 per share.
- Second-quarter revenue increased 6% to $4.83 billion, surpassing analyst expectations.
- Adjusted earnings per share for the quarter were $4.21, exceeding the $3.98 estimate.
- Fuel expenses for the quarter rose 27% year-over-year to $355 million.
Royal Caribbean trimmed its annual revenue forecast on Tuesday, citing a modest booking impact for select itineraries due to prolonged geopolitical activity, even as overall demand for cruises remains resilient. The cruise operator now expects revenue to grow about 9% in 2026, down from its previous forecast of approximately 10% growth.
Despite the revenue outlook adjustment, the Miami, Florida-based company raised its annual adjusted profit forecast to between $17.73 and $17.87 per share, up from $17.10 to $17.50 previously. This increase was attributed to stronger-than-expected second-quarter results and an improved outlook for the remainder of the year.
Chief financial officer Naftali Holtz stated that consumer demand for vacation experiences is strong and guests are demonstrating a desire to spend on memorable experiences. He also noted that 2027 bookings are running ahead of historical levels, even for itineraries affected by geopolitical disruptions this year.
Cruise operators have been contending with higher fuel costs linked to Middle East tensions. Royal Caribbean reported a 27% rise in quarterly fuel expenses to $355 million compared to the previous year. However, the company's updated earnings forecast suggests that strong onboard spending and tight cost controls are helping to offset these pressures. The full-year fuel expense forecast was slightly reduced to about $1.34 billion from $1.35 billion.
For the quarter ended June 30, Royal Caribbean reported a 6% increase in revenue to $4.83 billion, surpassing analysts' estimates of $4.82 billion. On an adjusted basis, the company earned $4.21 per share, exceeding analysts' expectations of $3.98 per share.