Sunny forecast for Royal Caribbean

It’s full steam ahead for the cruise ship industry after Royal Caribbean hiked its full-year profit guidance on Thursday, saying it expects 60% growth from last year following record bookings during the first quarter.

Travelers are paying “record ticket prices,” according to Royal Caribbean — despite a recent spate of high-seas deaths and missing-passengers reports, including a Florida 20-year-old who jumped off a Royal Caribbean cruise this month.

Soaring demand for vacations at sea has given cruise operators ample room to raise ticket prices as the industry looks to close the pricing gap between more expensive land-based holidays and give their profits a lift.

Royal Caribbean, which operates Celebrity Cruises, now expects annual profits of between $10.70 and $10.90 per share, compared with its earlier forecast of $9.90 to $10.10.

“Our existing fleet along with our new ships continue to perform exceptionally well, highlighted by the market response to the launch of Icon of the Seas,” CEO Jason Liberty said.

Overall, the industry. which was among the hardest hit during the pandemic, is expected to grow to 39.4 million passengers in 2027 from 31.7 million last year, according to Statista.