Strong RCG outlook for ‘23

ROYAL Caribbean Group (RCG) has reported a loss for the full year of 2022 of just over USD$2.2 billion, off total revenue of USD$8.8 billion.

Load factors were 85% overall for the year, with RCG’s full fleet back in operation since Jun.

Despite reporting a loss for the year, President & Chief Executive Officer

Jason Liberty (pictured) noted RCG’s return to a positive adjusted EBITDA (USD$711.6 million) and operating cash flow, which it was able to achieve by consistently growing revenue and controlling costs.

“We are experiencing a recordbreaking wave season, resulting in a booked position approaching previous record highs and at higher prices,” he said.

“This, along with the normalisation of our booking window, provides the visibility for us to provide annual guidance.

“The combination of our industry-leading global brands, most innovative fleet, nimble sourcing and our continued focus on profitability positions us well to deliver record yields and Adjusted EBITDA in 2023.”

Within its positive start to the new year, RCG noted its seven strongest bookings weeks in its history have occurred since its last earnings reporting in Nov.

North America sailings are currently leading the way, and are booked in line with record 2019 levels for the full year, and are ahead for the second quarter through the fourth quarter.

Bookings for European itineraries have been accelerating during wave season, and are now higher than 2019.

During 2023, RCG expects to exceed its prior record Adjusted EBITDA, achieved in 2019.

“Leisure travel strength continues as consumer spend is shifting towards experiences, with cruising remaining an attractive value proposition,” Liberty added.

“The quality demand trends further exhibit the strength of our brands and the growing propensity to cruise.”