With capacity up 2.6 per cent, higher ticket prices and onboard revenue were the main drivers for Royal Caribbean Cruises reporting record results today in the second quarter.
Royal Caribbean reported net income of (GAAP) $466.3 million, or $2.19 per share, on revenues of $2.3 billion for its second quarter ended June 30, 2018, compared to net income of $369.5 million, or $1.71 per share, on revenues of $2.2 billion last year.
Ticket revenue per passenger day was $163.76 for the second quarter of this year, compared to $158.92 last year and the onboard spend was $65.12 compared to $61.70 per passenger last year.
Operating expenses rose moderately at $128.70 per passenger day with increases in all expense categories, from $126.30 last year.
With operating income of $456.9 million this year, up $37.2 million from $419.7 million, $9.4 million in interest and other income this year, compared to a $50.2 million in interest and other expenses last year, contributed further to boost net income to $466.3 million over $369.5 million.
The increase in per share income was also boosted by fewer outstanding shares, a result of Royal Caribbean’s share buyback program. Outstanding shares numbered 212.5 million, compared to 216.1 million for the same period last year.
Royal Caribbean reported 10,213,067 passenger cruise days this year, up from 9,950,570 passenger cruise days last year, and 1,461,055 passengers, compared to 1,433,339 in 2017.