Description

Royal Caribbean’s $4.6 Billion Expansion Plan: Can New Ships and Resorts Sustain Growth?

Royal Caribbean Cruises Ltd. reported third quarter 2026 results that surpassed company guidance, supported by robust close-in demand and cost management partly influenced by timing shifts. The quarter saw net income of $1.7 billion, or $6.45 per diluted share, compared with $1.6 billion, or $5.74 per share, in the prior year. Adjusted net income reached $1.8 billion or $6.57 per share, and Adjusted EBITDA totaled $2.5 billion. Total revenues rose 9% year-over-year to $5.6 billion, driven by an 8% increase in capacity and a 9% increase in passengers carried, with load factors at 112%, indicating strong consumer engagement. Net yields grew by 0.9% as reported (0.6% in constant currency), primarily due to better-than-expected demand in Europe and the Caribbean. Gross margin yields declined slightly by 0.8% as reported. Gross cruise costs per Available Passenger Cruise Day (APCD) decreased 0.7%, while net cruise costs excluding fuel dropped 1.