Royal Caribbean Cruises Ltd reported third-quarter estimates and reiterated its full 2016 earnings guidance thanks to ongoing strength in cruise bookings.
The Miami-based cruise operator reported reported net income of $693m, up from $229m in the same period of last year
Adjusted earnings per share of $3.20 per share was better than the average estimate of $3.10 per share.
Shares in the New York-listed company rose more than 7% intraday, reaching over $73 per share.
The Richard Fain-led company said its booked position is better than the same time last year on both volume and rate. The company said net yields were up 2.9%, driven mainly by strong demand for North America itineraries while net cruise costs were down 1.6%.
Similar trends are expected in the fourth quarter with net yields expected to be up 6% for the quarter and net cruise costs down 1.5%. The yield improvement for the fourth quarter stems from the sale of the Pullmantur brand, and strong demand for itineraries in North America and Australia.
Royal Caribbean repeated that full-year earnings would be between $6 and $6.10 per share. The average estimate currently sits at $6.03 per share.
As for 2017, the company said bookings are ahead of last year in both pricing and volume. New ships including 5,400-berth Harmony of the Seas (built 2016) and 4,180-berth Ovation of the Seas (built 2016) are seeing strong demand, too.
