Description

Royal Caribbean Group: Can 6.7% Capacity Growth Outrun Softer Mediterranean Demand?

The Royal Caribbean Group reported first quarter 2026 results that surpassed both internal expectations and prior year performance, supported by a record Wave Season that underscored strong consumer demand across its portfolio. Revenues increased by 11% year-over-year, with adjusted earnings per share reaching $3.60—33% higher than the previous year and $0.37 above guidance. Demand remained healthy, driven by a rise in younger guests and repeat customers, while onboard spending and net yields also showed positive momentum, with net yields up 2%, exceeding the high end of guidance. The company highlighted strong cost discipline, achieving better-than-expected operating costs excluding fuel, and improved performance in joint ventures contributed to a 38% EBITDA margin, up over 300 basis points annually. Operating cash flow increased by 13% to $1.8 billion.