A decrease in net income for Royal Caribbean’s third quarter did not dampen the announcement that negotiations are underway for the possible construction of a third Oasis-class ship.
Reported during the company’s third quarter results last week, Royal Caribbean International chairman and CEO Richard D. Fain noted that whilst an agreement has not yet been entered into, they hope to do so by the end of the year.
“The Oasis of the Seas and Allure of the Seas have proven themselves to be exceptionally attractive ships by generating the highest guest satisfaction ratings in the fleet couples with very compelling financial returns,” Mr Fain said.
“Ordering another such ship for delivery in 2016, at a lower cost, with better energy efficiency is very consistent with our balanced goals of prudent growth, return improvement and debt reduction.”
Whilst close-in bookings were stronger than anticipated across most itineraries, Royal’s net income was reported at USD$367.8 million or USD$1.68 per share versus USD$399.0 million or USD$1.82 per share in 2011.
Citing the impact of the Costa Concordia tragedy on the second and third quarter results, the company expects the fourth quarter Net Yields to increase by approximately one percent on both Constant-Currency and As-Reported bases.
“The strong third quarter certainly validates our confidence in our business model,” Mr Fain said.
“Strong close-in demand and our focus on costs drove substantially better results than expected. I am especially gratified that we are still seeing price increases in a year marked by so many external pressures.”
The company noted that they are encouraged by the booking trends for 2013 thus far.