Royal Caribbean reports smaller-than-expected loss; forecast disappoints

Royal Caribbean reports smaller-than-expected loss; forecast disappoints

(Reuters) -Royal Caribbean Group reported a smaller-than-expected loss for its fourth quarter on Tuesday, as pent-up demand for leisure travel helped offset the pressures from rising fuel prices and stronger dollar.

Shares of the company rose 1.4% in premarket trade.

Booking volumes and occupancy rates have strongly rebounded since restrictions imposed during the pandemic were lifted, while the easing of on-board COVID-19 protocols has boosted spending on casinos and spas.

Cruise liners are also seeing strong booking volumes and occupancy rates by well-to-do Americans for the wave season, an important period between January and March where the operators offer special cruise deals and discounts for the year.

The company reported a fourth-quarter loss of $1.12 per share, compared with analysts expectations of a loss of $1.34, according to Refinitiv IBES data.

However, the cruise operator forecast 2023 adjusted profit between $3.00 and $3.60 per share, compared with estimates for a profit of $3.31.