Royal Caribbean Group reported better results than the company’s guidance due to stronger pricing on close-in demand, continued strength in onboard revenue and lower costs due to timing. The cruise ship owner also increased its earnings expectations.

The company reported on Tuesday its third quarter earnings per share (EPS) of $4.21 and adjusted EPS of $5.20. These results were better than the company’s guidance, Royal Caribbean Group said.

The cruise ship owner also is increasing its full year 2024 adjusted EPS guidance to $11.57-$11.62.

According to Royal Caribbean Group, the increase in earnings expectations is driven by the strong revenue performance in the third quarter and an increase in pricing expectations for the fourth quarter.

“Our exceptional third quarter results and increased full year expectations reflect the robust demand for our differentiated vacation experiences,” said Jason Liberty, president and CEO, Royal Caribbean Group.

“We see elevated demand patterns continuing as we build the business for 2025, and although the yield comparable will be a high bar, our proven formula of moderate capacity growth, moderate yield growth and strong cost discipline is expected to continue to deliver strong financial results. While we are still very early in the planning process, we anticipate earnings per share in 2025 to start with a $14 handle.”

The shipowner said its net Income for the third quarter of 2024 was $1.1bn compared to net income of $1.0bln for the same period in the prior year.

Adjusted Net Income was $1.4bln for the third quarter of 2024 compared to Adjusted Net Income of $1.1bln for the same period in the prior year. The company also reported total revenues of $4.9bln and Adjusted EBITDA of $2.1bln.

“The performance of our business continues to be robust, driven by strong demand and excellent operational execution,” noted Naftali Holtz, chief financial officer, Royal Caribbean Group.

The company now sees further growth in 2025. “Demand for 2025 is strong with booked load factors in line with prior years and at higher rates, allowing for further pricing and yield growth as 2025 bookings continue to ramp up,” it says.