Royal Caribbean First Quarter Profits Skyrocket

Royal Caribbean Cruises Ltd. announced first-quarter profits of $75.6 million, or 35 cents per share, compared to net income of $8.8 million, or 4 cents per share in the same period last year.

The company said the significant increase in earnings was due primarily to increased capacity and higher yields, offset by higher fuel prices. Revenues for the first quarter 2008 increased to $1.4 billion from revenues of $1.2 billion in the first quarter 2007.

Higher fuel prices increased costs by $60 million in the first quarter, which reduced earnings per share by $0.28. Fuel prices increased 53 percent. The average at-the-pump price for the quarter was $592 per metric ton versus $388 per metric ton in 2007.

The company expects a 5.1 percent increase in capacity in 2008, driven primarily by a full year of Liberty of the Seas, the Independence of the Seas entering service in May, Pullmantur’s purchase of Pacific Star, and Celebrity Solstice entering service in the fourth quarter.

Based on current ship orders, projected capital expenditures for 2008, 2009, 2010, 2011, and 2012, are estimated to be $1.9 billion, $2 billion, $2.2 billion, $1 billion, and $1 billion, respectively.