Royal Caribbean Cruises today reported third quarter results of $3.49 per share, which includes a $0.20 negative impact from the recent hurricanes; updated full year guidance to a range of $7.35 to $7.40, which includes a $0.26 negative impact from the recent hurricanes; and introduced its new three-year program designed to further drive performance: 20/20 Vision.

US GAAP and Adjusted Net Income were $752.8 million or $3.49 per share. Last year, US GAAP Net Income was $693.3 million, or $3.21 per share, and Adjusted Net Income was $690.9 million, or $3.20 per share.

Gross Yields were up 5.6% on a Constant-Currency basis (up 6.2% As-Reported). Net Yields were up 5.3% on a Constant-Currency basis (up 5.9% As-Reported).

Gross Cruise Costs per APCDs increased 5.2% on a Constant-Currency basis (5.6% As-Reported). Net Cruise Costs (“NCC”) Excluding Fuel per APCDs were up 5.7% on a Constant-Currency basis (up 6.0% As-Reported).

Adjusted earnings per share are expected to be in the range of $7.35 to $7.40 per share. This includes a $0.26 negative impact from the recent hurricanes.

Financially, the storms were unusually impactful because of when and where they hit and the net effect was a cost to the company in excess of $55 million or $0.26 per share, the company said.

Most of this impact was from lost revenue, but there were also direct costs associated with the storms and with the company’s humanitarian efforts. In addition, there were significant timing shifts across a wide range of activities as expenses were shifted between quarters to adjust to the storms. Nevertheless, the company still expects to generate earnings for the year within the increased range of guidance provided prior to the storms.

“We are only weeks away from crossing the finish line of our Double-Double program and I want to thank all of our employees for their remarkable efforts,” said Richard D. Fain, chairman and CEO. “The recent storms presented extraordinary challenges and I am extremely proud of the generosity, strength of character and sense of social responsibility displayed by our employees and the industry as a whole.”

Our 20/20 Vision will continue to leverage the culture and discipline instilled by the Double-Double program, according to a statement.

“20/20 Vision will serve as a guiding light for the organization over the next three years. The program builds on our proven formula for success: modest yield growth, strong cost control and moderate capacity growth, while incorporating key operational drivers of our long-term progress,” said Fain.

US GAAP and Adjusted Net Income for the third quarter were $752.8 million or $3.49 per share, better than previous guidance. Last year, US GAAP Net Income was $693.3 million, or $3.21 per share, and Adjusted Net Income was $690.9 million, or $3.20 per share.

Gross Yields were up 5.6% on a Constant-Currency basis. Net Yields were up 5.3% on a Constant-Currency basis. This was better than previous guidance due to strong close in booking and pricing trends on China, Europe, and North American itineraries. While the hurricanes had a negative impact on overall revenue, they were neutral to Net Yields in the third quarter.

Gross Cruise Costs per APCDs increased 5.2% on a Constant-Currency basis. Net Cruise Costs (“NCC”) Excluding Fuel per APCDs were up 5.7% on a Constant-Currency basis. The reduction in capacity due to the hurricanes mainly drove the increase in the cost metric relative to guidance. Absolute costs for the quarter were better than expected, mainly due to timing.

Favorable trends in fuel, in both price and consumption, also provided a benefit to the quarter. Bunker pricing net of hedging for the third quarter was $498.55 per metric ton and consumption was 322.4 metric tons.

“Delivering record earnings during a period of such unprecedented disruption is a testament to the strength in demand for cruising and for our brands,” said Jason T. Liberty, executive vice president and CFO. “Strong demand trends coupled with our continued cost discipline have put us in a strong position to successfully complete our Double-Double program. As a matter of fact, I am pleased to report that we have already achieved our Double-Double targets on a trailing twelve month basis through September 2017.”

The company expects full year Adjusted EPS guidance to be in the range of $7.35 to $7.40 per share. Excluding the cost of the hurricanes, Adjusted EPS would have been in the range of $7.60 to $7.65 per share.

Constant-Currency and As-Reported Net Yields are expected to increase approximately 6.0% for the full year and NCC ex. Fuel per APCDs are expected to be up approximately 2.0% on a Constant-Currency and As-Reported basis.

Taking into account current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company expects 2017 Adjusted EPS to be in the range of $7.35 to $7.40 per share.

Constant-Currency Net Yields are expected to be up 2.0% to 2.5% in the fourth quarter of 2017. NCC ex. Fuel are expected to be up approximately 8.5% on a Constant-Currency basis. The year-over-year increase is driven by planned sales and marketing investments, timing of third quarter costs and lower than expected APCDs due to the hurricanes.

Based on current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company expects fourth quarter Adjusted EPS to be in the range of $1.15 to $1.20 per share.

The company is experiencing strong early booking trends for 2018. Booked load factors and APDs are higher than same time last year while the booking window has continued to extend.

Management is excited by the 2018 introduction of Symphony of the Seas in Europe next spring and Celebrity Edge in Fort Lauderdale in December of 2018. While still early in the booking cycle, the view for 2018 is encouraging and the company expects another year of solid yield and earnings growth.

The company does not forecast fuel prices and its fuel cost calculations are based on current at-the-pump prices, net of hedging impacts. Based on today’s fuel prices, the company has included $177 million and $686 million of fuel expense in its fourth quarter and full year 2017 guidance, respectively.

Forecasted consumption is 65% hedged via swaps for 2017 and 56%, 47%, 36% and 14% hedged for 2018, 2019, 2020 and 2021, respectively. For the same five-year period, the average cost per metric ton of the hedge portfolio is approximately $498, $421, $331, $340 and $351, respectively.