Royal Caribbean profits soar as travelers pay ‘record ticket prices’ – in wake of teenager Levion Parker jumping overboard

Cruise operator Royal Caribbean has the wind in its sails.

The company said this week that soaring demand for vacations at sea has enabled it to sell tickets at record prices – doubling growth to its earnings.

It comes just weeks after a 20-year-old went missing after jumping overboard from one of its ships between Grand Inagua Island and Cuba.

Royal Caribbean Group’s net income for the first quarter was $360 million compared to a loss of $48 million for the same period last year.

‘Wow, what a great start to the year,’ said CEO Jason Liberty on announcing the results this week. ‘What transpired over the past three months was even better than our already elevated expectations.’

This month 20-year-old Levion Parker jumped from the deck of a Royal Caribbean cruise ship

In light of the surge in ticket sales, Royal Caribbean lifted its annual profit forecast for a second time.

‘Things just continue to accelerate and the thirst or hunger for our brands,’ Liberty said during a post-earnings call.

Its success also comes even though the quarter aligns with the ‘wave season’ – the period after the new year which generally sees reduced demand and requires operators to slash prices to make sales.

In April, the company, which also operates Celebrity Cruises, with slightly more upmarket albeit smaller ships, experienced record bookings from ‘both a volume and pricing standpoint.’

The operator carried just over 2 million passengers in the first quarter, nearly 14 percent higher year-over-year.

And not only that, Liberty noted that customers are spending more while they are on cruises and booking cruises even further in advance. 

Higher ticket prices have helped protect the company from slightly steeper net cruise costs expected this year due to increased dry dock days – during which ships will be taken out of the water for maintenance.

Canceled trips to the Red Sea due to ongoing conflict have also impacted earnings.

It has also faced slightly steeper fuel costs – spending $304 million over the three months as opposed to $302 million during the wave season quarter last year.

Royal Caribbean’s share price was flirting with an all-time high on Friday – trading at around $140 and up more than 16 percent so far this year

Levion Parker went missing after jumping overboard from one of Royal Caribbean’s ships between Grand Inagua Island and Cuba 

The company expects net cruise costs excluding fuel to increase about 5.5 percent for the year, up from its earlier forecast of around 4 percent.

Royal Caribbean’s share price was flirting with an all-time high on Friday – trading at around $140 and up more than 16 percent this year.

‘I remember owning the stock in 2022 and every client was giving me grief about it,’ Peter Ahluwalia, manager at Belinvest Global Equity Fund and chief investment officer at Swiss Partners Group, told Reuters.

‘We’re turning almost 45 percent return on equity at the moment, which is quite incredible,’ he added.