Royal Caribbean Eyes Strong 2025 Profit on Robust Cruise Travel Demand

Jan 28 (Reuters) – Royal Caribbean said on Tuesday that 2025 was shaping up “to be another great year,” with a near 23% jump expected in adjusted earnings, as it benefits from higher bookings at record prices and new river cruise itineraries.

Its shares rose 6% in early trading after the company also forecast full-year adjusted earnings per share of $14.35 to $14.65, largely above analysts’ estimates of $14.41, according to data compiled by LSEG.

Sea-based vacations have sustained strong demand as cruise operators invest millions of dollars in introducing new ships and voyages to private destinations.

Royal Caribbean said its “WAVE” season — a period at the start of a year when cruise companies offer deals and promotions to drive bookings — was off to a record start, with travelers bookings in line with the prior years but at higher prices.

The company now plans to expand its offerings with the launch of Celebrity River Cruises, a river cruise vacation that will begin taking bookings this year. It has committed to an initial order of 10 ships and plans to sail in 2027.

The news sent shares of Viking Holdings, the industry leader in river cruises, down 3% on Tuesday.

“This creates another avenue for growth for RCL, while encroaching on VIK’s bread and butter segment,” said James Hardiman, Citi analyst in a note.

Royal Caribbean’s fourth-quarter revenue rose 13% to $3.76 billion, compared with analysts’ average estimate of $3.77 billion.

It posted adjusted earnings of $1.63 per share, above analysts’ estimates of $1.50. Net cruise costs, excluding fuel, jumped 13.4%, compared with a 6.2% rise a year earlier.

(Reporting by Ananya Mariam Rajesh in Bengaluru and Doyinsola Oladipo in New York; Editing by Shinjini Ganguli)

(c) Copyright Thomson Reuters 2025.

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