Royal Caribbean Cruises Reports 17.5% Revenue Growth in Q3 2024, Net Income Reaches $1.115 Billion

Royal Caribbean Cruises Ltd. reported significant financial growth in its Q3 2024 results, with total revenues reaching $4,886 million, a 17.5% increase from $4,160 million in Q3 2023. Passenger ticket revenues contributed $3,471 million, up from $2,941 million, driven by a 10.9% increase in capacity and higher ticket prices. Onboard and other revenues also rose to $1,415 million, reflecting a 16.1% increase from the previous year.

For the nine months ended September 30, 2024, total revenues amounted to $12,724 million, compared to $10,569 million in the same period of 2023. Passenger ticket revenues for this period increased by 22% to $8,900 million, while onboard revenues rose by 16.3% to $3,824 million. The overall growth in revenues was attributed to increased capacity, improved pricing, and higher onboard spending.

Operating income for Q3 2024 was $1,634 million, representing 33.4% of total revenues, compared to $1,265 million (30.4% of revenues) in Q3 2023. Net income for the quarter was $1,115 million, up from $1,011 million, with diluted earnings per share increasing to $4.21 from $3.65. For the nine-month period, net income reached $2,337 million, compared to $1,425 million in 2023.

Total cruise operating expenses for Q3 2024 increased to $2,391 million from $2,137 million, primarily due to the increased capacity. For the nine months, expenses rose to $6,600 million from $5,885 million, with significant contributions from higher drydock and maintenance costs.

Strategically, Royal Caribbean has made notable investments, including the acquisition of the Port of Costa Maya in Mexico for approximately $292 million, expected to close in the first half of 2025. The company also completed a partnership with iCON Infrastructure Partners VI, focusing on cruise terminal facilities and infrastructure in key ports.

As of September 30, 2024, total assets increased to $37,067 million from $35,131 million at the end of 2023, while total liabilities decreased to $20,490 million from $21,083 million. The company reported total shareholders' equity attributable to Royal Caribbean Cruises Ltd. of $7,045 million, a significant increase from $4,724 million at the end of 2023.

Royal Caribbean's liquidity position remains strong, with $418 million in cash and cash equivalents and $3.5 billion in undrawn revolving credit capacity. The company declared a cash dividend of $0.40 per share during the quarter, marking a return to dividend payments after previous restrictions.