Royal Caribbean Group says it will reinstate its dividend as it raised its profit forecast.
“Exceptional demand has accelerated our performance by generating significant yield growth,” Royal Caribbean Jason Liberty said on the Q3 earnings call.
There is ‘strength for all key products’ Liberty added.
The cruise operator is already generating more bookings for next year than 2024.
It reported net income of $854 million.
It currently has a cash flow of $1.6 billion.
Booking volumes are higher than a year ago with record pricing levels.
Despite the bullish sentiment, shares fell 4%.
The company said costs will likely rise due to longer dry dock periods.
Investors are also concerned about lower-than-anticipated improvement in occupancy levels.
Although yields are still high, occupancy growth is slowing.
The cruise operator plans to bring back its quarterly dividend from October at 40 cents per share.
The big three operators suspended dividends at the back end of the pandemic.
Noted for its modern mega cruise ships, Royal Caribbean has older vessels reaching the end of their lifespan.
These could well be replaced by new, smaller ships, Liberty said.
