'Wow, what a great start to the year! Demand for our leading brands and the incredible experiences they deliver continues to be very robust, resulting in outperformance in the first quarter, a further increase of full year earnings guidance, and 60% expected earnings growth year over year,' said
Key Highlights
Stronger than anticipated demand led to a record WAVE season and continued strength in bookings in April from both a volume and pricing standpoint. This robust booking environment across all key itineraries coupled with continued strength in onboard spend, led to higher revenue versus guidance in the first quarter and a further improvement in full year yield expectations.
First Quarter 2024:
Load factors in the first quarter were 107%.
Gross Margin Yields were up 60.3% as-reported. Net Yields were up 19.3% in Constant-Currency (19.5% as-reported).
Gross Cruise Costs per Available Passenger Cruise Days ('APCD') increased 5.1% as-reported. Net Cruise Costs ('NCC'), excluding Fuel, per APCD increased 4.1% in Constant-Currency (4.2% as-reported), which benefited from 325 bps of favorable timing of expenses.
Total revenues were
Full Year 2024 Outlook:
Net Yields are expected to increase 9.0% to 10.0% in Constant-Currency and as-reported.
NCC, excluding Fuel, per APCD is expected to increase approximately 5.5% in Constant-Currency (approximately 5.4% as-reported), including 310 bps of costs related to increased drydock days and the new operations of Hideaway Beach at Perfect Day at CocoCay. Approximately one third of the increase in unit costs, compared to prior guidance, is related to lower APCDs due to cancelled Red Sea Sailings with the remainder driven by higher stock-based compensation.
Adjusted EPS is expected to grow 60% year over year and be in the range of
The company expects to achieve all of its
First Quarter 2024 Results
Net Income for the first quarter of 2024 was
Gross Margin Yields increased 60.3% as-reported, and Net Yields increased 19.3% in Constant Currency (19.5% as-reported) when compared to the first quarter of 2023. Load factor for the quarter was 107%, up 5 percentage points compared to the first quarter of 2023. About half of the first quarter yield growth was driven by higher ticket pricing on existing hardware, with the remainder driven by a combination of onboard revenue rates, higher load factors, and new hardware. While onboard revenue continues to grow, the company is particularly pleased with the significant increase in ticket rates compared to 2023.
Gross Cruise Costs per APCD increased 5.1% as-reported, compared to 2023. NCC, excluding Fuel, per APCD increased 4.1% in Constant Currency (4.2% as-reported), when compared to the first quarter 2023. Costs were favorable to prior guidance due to the timing of expenses.
Update on Bookings
The demand and pricing environment continues to be very strong. Overall, this has been the strongest WAVE season in the company's history from both a demand and pricing standpoint. As a result, the company continues to be in a record booked position, with rates for 2024 sailings even further ahead of 2023 than they were at the beginning of the year. In addition to record ticket pricing, consumer spending onboard and pre-cruise purchases continue to exceed prior years driven by greater participation at higher prices.
'Our existing fleet along with our new ships continue to perform exceptionally well, highlighted by the market response to the launch of Icon of the Seas, which has exceeded all expectations,' added Liberty. 'The momentum continues with
As of
Second Quarter 2024
Net Yields are expected to increase 10.20% to 10.70% in Constant Currency (10.0% to 10.5% as-reported).
NCC, excluding Fuel, per APCD, is expected to increase 7.4% to 7.9% in Constant Currency (7.2% to 7.7% as-reported) compared to 2023 and includes costs related to increased drydock days and the operations of Hideaway Beach, as well as timing of costs shifted from the first quarter.
Based on current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company expects second quarter Adjusted EPS to be in the range of
Fuel Expense
Bunker pricing, net of hedging, for the first quarter was
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
The company provided the following guidance for the first quarter and full year 2024:
FUEL STATISTICS: See full results at:
https://presscenter.rclcorporate.com/press-release/206/q1-2024-earnings/
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