Miami—April 30, 2026, 12:05 (EDT)
- Royal Caribbean cut its 2026 adjusted earnings outlook, now targeting $17.10 to $17.50 per share.
- The cruise operator reported that bookings bounced back following a lull in March and early April, blaming the earlier dip on geopolitical disruption.
- Investors zeroed in on demand and pricing, sending shares up sharply after a quarter that proved stronger than many had feared.
Royal Caribbean Group trimmed its full-year profit forecast Thursday, citing a drag from rising fuel costs. The cruise operator did manage to top Wall Street’s expectations for first-quarter earnings, with bookings firming up on crucial routes.
Royal Caribbean Cruises Ltd., based in Miami, cut its 2026 adjusted earnings per share outlook to a range of $17.10 to $17.50, a downgrade from the previous $17.70 to $18.10. The cruise giant is now forecasting fuel expenses of about $1.35 billion for the year, with 59% of its remaining 2026 fuel needs hedged—so more than half of its fuel costs are protected by contracts aimed at curbing volatility.
The rate cut has grabbed more attention as cruise demand remains steady, yet costs are increasingly unpredictable. Royal Caribbean flagged a dip in bookings for Mediterranean and West Coast Mexico itineraries during March and early April, blaming geopolitical events, but said bookings have picked up again lately.
The stock jumped 8.7% to $276.06 by late morning, pulling back after climbing as much as 10.8% earlier, according to Reuters. Carnival Corp. advanced 5.1%. Norwegian Cruise Line Holdings moved up 3.7%. Investors seem to be treating Royal Caribbean’s remarks on demand as a read-through for the entire cruise space.
Royal Caribbean posted net income of $941 million for the first quarter, or $3.48 per share. That’s up from $730 million, or $2.70 per share, a year ago. Adjusted earnings landed at $3.60 a share, beating the $3.19 forecast from analysts surveyed by LSEG. Revenue climbed 11% to $4.5 billion.
The company reported carrying 2.5 million guests in the quarter, a 12% increase over last year. Capacity was up 8%. Load factor hit 109%—ships were packed—thanks to pricier tickets, last-minute bookings, and people spending more onboard.
Chief Executive Jason Liberty pointed to the company’s “strong first quarter results and record WAVE season,” calling it proof of the brands’ broad appeal. “Demand for our experiences continues to be strong,” he said. PR Newswire
Royal Caribbean’s near-term outlook came in below some expectations. For the second quarter, the company projects adjusted earnings per share between $3.83 and $3.93. Fuel costs are pegged at $346 million, with hedges covering 60% of usage. Royal Caribbean also sees full-year net yields—basically, revenue per available capacity—climbing 2.3% to 3.3% on a reported basis.
The risk is hard to miss. Elevated fuel prices or travel snarls disrupting flights into Europe and other key cruise regions could slow Royal Caribbean’s uptick in Mediterranean bookings—especially during the second and third quarters, when those pricier trips are on the line. CFRA Research analyst Alex Fasciano, speaking with Reuters, pointed out that “sustained higher fuel costs” threaten profitability, though he noted Royal Caribbean might tweak routes to cushion the blow. Reuters
Royal Caribbean’s spending spree isn’t slowing down. The company is projecting around $5 billion in capital expenditures this year, most of it targeting new ships and land-side destination developments. Legend of the Seas is due for delivery in the second quarter, according to the company. In the first quarter, Royal Caribbean repurchased 2.9 million shares at a cost of $836 million, which leaves $1.0 billion still available under its current buyback program.
Royal Caribbean includes Royal Caribbean International, Celebrity Cruises, and Silversea in its portfolio, with a stake as well in TUI Cruises, Reuters company data shows. The company’s fleet visits roughly 1,000 ports spanning every continent, so it faces not only the ups and downs of U.S. consumer demand but also shifting fuel costs, currency swings, port logistics, and airline factors worldwide.
