Royal Caribbean on Thursday raised its full-year profit outlook after reporting vigorous early bookings and stronger-than-expected demand among higher-spending customers, sending the company's shares sharply higher in early trading.
The cruise operator said the initial weeks of Wave - the industry’s key January-to-March booking window when companies promote limited-time offers - ranked among its strongest on record, driven by affluent travelers who continue to favor sea-based vacations. "WAVE is off to a great start, and we continue to see strong and growing preference for our leading brands and differentiated vacation experiences," CEO Jason Liberty said.
Royal Caribbean reported that about two-thirds of its 2026 capacity is already reserved and at record pricing. The company added that onboard spending and purchases made before sailings are running ahead of prior-year levels, trends it expects to support revenue and profitability as the year progresses.
Operationally, the company pointed to investments intended to broaden its appeal and lift onboard revenue: new vessels and curated land-based offerings such as the Royal Beach Club Santorini, along with extended itineraries for ships including "Star of the Seas" and "Celebrity Xcel." It also announced new agreements with France's Chantiers de l'Atlantique shipyard to construct future Discovery Class ships, while Celebrity Cruises will expand into rivers with the addition of 10 more river ships.
The market reacted strongly to the update. Royal Caribbean's shares jumped about 16% in early trading, while peers also rose: Norwegian Cruise climbed 9%, Carnival gained 6.6%, and Viking Holdings increased 3.8% in morning trade.
Royal Caribbean provided financial guidance alongside the booking commentary. For the first quarter, it expects adjusted earnings per share in the range of $3.18 to $3.28, above analysts' consensus estimate of $2.91 per share. For the full fiscal year 2026, it forecast adjusted profit per share between $17.70 and $18.10, compared with analysts' expectations of $17.66 per share, according to LSEG data. The company also said it expects full-year fuel costs of $1.17 billion.
On a reported basis, fourth-quarter revenue rose about 13% year-over-year to $4.26 billion.
The upbeat tone from Royal Caribbean comes amid similar moves elsewhere in the industry. Carnival Corp previously raised its annual profit outlook in December, attributing its revision to stronger ticket pricing and persistent demand.
Market and sector implications
- Strong wholesale and premium demand supports pricing power and revenue mix for cruise operators.
- Investments in ships and exclusive destinations are being used to drive guest acquisition and lift onboard spending.
- Positive stock responses across multiple cruise companies indicate sector-wide investor confidence in demand resilience and pricing trends.