Cost Reductions Drive Royal Caribbean’s Earnings Increase

Oasis of the Seas calls in Vigo, Spain. (photo: Rui Minas Agostinho)Reporting its Q3 results today, Royal Caribbean Cruises posted net income of $490.3 million, or $2.19 per share, on revenues of $2.4 billion, compared to net income of $356.7 million, or $1.65 per share, on revenues of $2.3 billion for the same period last year.

While the earnings are robust, the year-over-year increase is driven by cost reductions, while net ticket income and onboard revenue per passenger day are down from last year as is the average ticket price passengers paid.

Royal Caribbean posted net ticket revenue per passenger day of $144.72 this year, compared to $148.15 last year, and net onboard revenue of $43.67 per passenger day this year, compared to $44.91 last year.

Gross ticket revenue per passenger day was $186.05 this year, compared to $179.74 last year, and gross onboard spending per passenger day was $62.69 this year, compared to $68.77 last year.

Passengers paid an average of $1,348 for their cruise ticket during this year’s Q3 compared to $1,373 last year.

Royal Caribbean full-year earnings guidance is for $3.45 per share (2014) and for 2015, $4.55 per share.

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