"We reached two important milestones in our recovery this quarter – returning our entire global fleet back to operations and delivering positive operating cash flow and EBITDA," said Jason Liberty, president and chief executive officer of Royal Caribbean Group. "Consumers' propensity to travel and cruise remains strong. We continue to see a robust and accelerating demand environment for cruising and on-board spend. Cruising remains a very attractive value proposition for vacationers, and today we have an opportunity to further close the value gap to other land-based vacation offerings," added Liberty. "Our liquidity position remains strong, and we are generating positive operating cash flow and EBITDA. With the fleet back in service, we have the full strength of our platform as we continue to execute on our recovery and build on our capabilities for long-term success."

Business Highlights

• In June, the Group completed the return of its global fleet to operations across key destinations.
• Load factors in the second quarter were 82% overall, with June sailings reaching almost 90%.
• Based on the continued strength in consumer demand, the company expects load factors will average approximately 95% in the third quarter and increase to triple digits by year-end.
• Booking volumes received in the second quarter for the back half of 2022 sailings remained significantly higher than booking volumes received in the second quarter of 2019 for the back half of 2019.
• The second half of 2022 is booked below historical ranges but at higher prices than 2019, with and without future cruise credits (FCCs).
• For 2023, all quarters are currently booked within historical ranges at record pricing.
• For the third quarter of 2022 and based on current currency exchange rates, fuel rates and interest rates, the company expects to generate approximately USD 2.9 billion - USD 3.0 billion in Total Revenues, Adjusted EBITDA of USD 700 million - USD 750 million and Adjusted Earnings Per Share of USD 0.05 - USD 0.25.

Second Quarter 2022

The company reported Net Loss for the second quarter of 2022 of USD (0.5) billion or USD (2.05) per share compared to Net Loss of USD (1.3) billion or USD (5.29) per share in the prior year. The company also reported Adjusted Net Loss of USD (0.5) billion or USD (2.08) per share for the second quarter of 2022 compared to Adjusted Net Loss of USD (1.3) billion or USD (5.06) per share in the prior year. The Net Loss and Adjusted Net Loss for the quarter are primarily the result of the impact of the COVID-19 pandemic on the business.

Second quarter results exceeded the company's expectations driven by better revenue and cost performance. Second quarter load factors were 82%. Load factors increased to almost 90% in June, with Caribbean itineraries averaging over 100%. Total revenues per passenger cruise day were at record levels and up 4% as reported and 5% in constant currency versus the second quarter of 2019.

Gross Cruise Costs per APCD improved 2.4% as reported and 1.9% in constant currency, compared to the first quarter 2022. Net Cruise Costs (NCC), excluding fuel, per APCD improved 16.5% as reported and 16.2% in constant currency, compared to the first quarter of 2022. Gross Cruise Costs per APCD and NCC per APCD for the second quarter included USD 7.75 per APCD related to enhanced health protocols and one-time costs to return ships and crew back to operations. 

The Group continues to benefit from the delivery of new, more efficient ships and past sales of less efficient ships, as well as actions taken to improve operating costs and margins that continue to materialize as operations ramp up.

Full report https://www.rclinvestor.com/press-releases/release/?id=1605