Not much expected from Aus: Fain

ROYAL Caribbean 'roup does not expect Australia to open to cruise travel until the northern spring, Chief Executive Officer Richard Fain noted in the company’s third quarter earnings conference call.

Despite confirming the country remains an important market, Fain noted “Australia’s approach to containing the pandemic has been based on isolation”.

“They are now rapidly switching to the vaccines as a way to controlling the disease...we do not expect Australia to open to cruise travel until the spring,” Fain said.

“Since the summer season doesn’t start until our next winter anyhow, we’re not counting on much from Australia until the end of next year.”

Throughout the rest of the world, Royal Caribbean noted its vessel operations restart was at a strong pace.

By the end of this year, Royal Caribbean anticipates 50 out of 61 ships will have returned to service across its five brands, representing almost 100% of its core itineraries and approximately 80% of worldwide capacity.

While the “Delta dip” caused a delay in Royal Caribbean’s booking progress, it did not alter its strong fundamental trajectory.

Sailings for next year are booked within historical ranges and at higher prices than 2019, even when including cruise credits.

Royal Caribbean expects to be cash flow positive by the northern spring and profitable for the full year of 2022.

More than 500,000 guests have sailed across Royal Caribbean’s brands since the restart of operations, with more than 1 million guests expected by the year’s end.

Passenger satisfaction scores and onboard spending per guest are also both at the highest levels in Royal Caribbean’s history.

Pictured: Ovation of the Seas.