By By Ananya Mariam Rajesh and Doyinsola Oladipo
(Reuters) -Royal Caribbean boosted its annual profit forecast on Tuesday for the fourth time this year, driven by high demand for private destinations and cooler cruise travel spots, as well as multiple ticket price hikes.
The surge in cruise demand is still going strong and customers are also splurging on on-board activities, boosting growth at operators including Royal Caribbean (NYSE:RCL), Norwegian Cruise and Carnival (NYSE:CCL) Cruise.
However, Royal Caribbean, which owns the world’s largest cruise ship, warned that it expects a hit to fourth-quarter profit from Hurricane Milton, which wreaked havoc in the Atlantic region, forcing the company to adjust itineraries.
It forecast fourth-quarter adjusted profit per share between $1.40 and $1.45, compared to an estimate of $1.58, according to data compiled by LSEG.
Shares of the company, which have risen 57% so far this year, were down 2% in premarket trading.
Royal Caribbean’s third-quarter total revenue rose nearly 18% to $4.89 billion, compared to an estimate of $4.90 billion.
“Our exceptional third quarter results and increased full year expectations reflect the robust demand for our differentiated vacation experiences,” Royal Caribbean Group CEO Jason Liberty said in a statement.
Major cruise operators are investing millions of dollars into their own private destinations, packed with excursions, beaches, bars and restaurants, helping attract customers looking for amusement park-like vacations while on a cruise.
Royal Caribbean said demand for 2025 was strong, with booked load factors in line with prior years and at higher rates, allowing for further price hikes as 2025 bookings ramp up.
It expects annual adjusted earnings per share of $11.57 to $11.62, compared with its earlier expectation of per share profit between $11.35 and $11.45.
The company posted third-quarter adjusted earnings per share of $5.20, compared with analysts’ estimate of $5.03 per share.