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Record profit for Royal Caribbean Cruises
Royal Caribbean Cruises has announced record net income for the fourth quarter 2006 of $46.6 million.
This compares with a net loss of $3.6 million for the fourth quarter 2005.
Revenues for the fourth quarter 2006 increased to $1.2 billion from revenues of $1.0 billion in the fourth quarter 2005.
Net income for the full year 2006 was $633.9 million, compared to income before the cumulative effect of a change in accounting principle of $663.5 million, for the full year 2005.
Revenues for the full year 2006 increased to $5.2 billion from revenues of $4.9 billion in 2005 and net yields grew 3.4% to a record $178.
“It is very gratifying to achieve such strong performance, especially in our traditionally softest quarter,” said chairman and chief executive officer Richard D. Fain.
“This certainly tops off another excellent year. We are particularly pleased with the solid yield performance of our brands, and healthy earnings despite significantly higher fuel costs.
“Royal Caribbean International and Celebrity Cruises grew yields 3.4% for the full year 2006. This is at the high end of our original expectations, and is a testament to the strength and momentum of our brands, particularly given a Caribbean pricing environment that is less robust than we had hoped.”
Looking forward, the company currently forecasts that 2007 net yields will increase in a range around 3% compared to 2006.
But Fain explained: “The early indications from the ‘wave period’ are less encouraging than we had hoped.
“We have seen the usual uptick in volume, while pricing appears to have leveled off from the healthy appreciation we have seen over the last few years. The beginning of the year is down slightly, but the revenue picture for the balance of the year is stronger.
“Coming off a great year, we are encouraged by the prospects of solid earnings accretion in 2007, despite a leveling off in pricing in the early part of the year.
“The introduction of Liberty of the Seas in April, the integration of Pullmantur and the associated vessel realignments we have announced will continue the strong brand momentum we have been enjoying.”
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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