The Carnival Magic arrived in Miami today to kick off a series of cruises to the Caribbean.
Sailing from its new year-round homeport in South Florida, the 3,650-guest vessel is set to offer a series of six- to eight-night itineraries to different destinations in the region.
The first cruise of the program includes six days cruising to the Eastern Caribbean, with planned visits to Half Moon Cay, in the Bahamas; Grand Turk, in Turks and Caicos; and Amber Cove, in the Dominican Republic.
Cruises to the Western Caribbean are also part of the program, including six-night itineraries to Mexico and Belize, and seven-night cruises to Mexico and Honduras.
The Carnival Magic is also set to cruise to the Southern Caribbean from Miami, offering eight-night itineraries that feature destinations in Aruba, Curaçao, and more.
Other ports of call included in the ship’s itineraries include St. Thomas, in the U.S. Virgin Islands, Philipsburg, in St. Maarten, Nassau, in the Bahamas, and more.
With the Carnival Magic now based in Miami as well, a total of five Carnival Cruise Line ships are sailing from the South Florida homeport on a year-round basis.
The Carnival Celebration, the Carnival Horizon, the Carnival Conquest and the Carnival Sunrise complete the company’s fleet in PortMiami.
Offering three- to eight-night cruises to the Bahamas and the Caribbean, the vessels sail to popular destinations in the region, such as Nassau, Princess Cays, George Town, La Romana, Puerto Rico and more.
A sister to the 2009-built Carnival Dream, the Carnival Magic originally entered service in 2011. Built in Italy by the Fincantieri shipyard, the vessel offers several facilities and attractions, including a large casino, a multi-level theater and an extensive array of dining venues.
The Magic also boasts innovative features, including an outdoors sports complex named Sports Square and The Lanai, a wrap-around promenade with whirlpools that extend out over the ship’s sides.
Royal Caribbean Group today reported third quarter Earnings per Share of $3.65 and Adjusted EPS of $3.85 for the third quarter of 2023.
These results were better than the company’s guidance due to stronger close-in demand and further strength in onboard revenue, the company said in a press release.
The company is also increasing its full year 2023 Adjusted EPS guidance to $6.58 – $6.63, driven by strong demand and continued strength in onboard revenue.
“The strength of our brands and the acceleration of consumer spending on experiences have propelled us towards another outstanding quarter and a robust 2023,” said Jason Liberty, president and CEO, Royal Caribbean Group. “Looking ahead, we see accelerating demand as we build the business for 2024. Our booked load factors are higher than all prior years and at higher rates, further supporting our trajectory towards the Trifecta goals,” added Liberty. “The combination of our leading brands, the best people, and the most innovative fleet and destinations, positions us exceptionally well to deliver on a lifetime of vacation experiences while creating long-term shareholder value.”
Third Quarter 2023 Results:
Gross Margin Yields increased 19.1% As-Reported, and Net Yields increased 16.7% in Constant-Currency (16.9% As-Reported), both compared to the third quarter of 2019.
Gross Cruise Costs per Available Passenger Cruise Day (“APCD”) increased 14.4% As-Reported, and Net Cruise Costs (“NCC”), excluding Fuel, per APCD increased 10.3% in Constant-Currency (10.1% As-Reported), both compared to the third quarter of 2019.
Total revenues were $4.2 billion, Net Income was $1.0 billion or $3.65 per share, Adjusted Net Income was $1.1 billion or $3.85 per share, Adjusted EBITDA was $1.7 billion.
Full Year 2023 Outlook:
Net Yields are expected to increase 12.9% to 13.4% in Constant-Currency (12.4% to 12.9% As-Reported), compared to 2019.
NCC, excluding Fuel, per APCD is expected to be up 7.0% to 7.5% in Constant-Currency (6.5% to 7.0% As-Reported), compared to 2019, and includes approximately 30 basis points impact due primarily to reduced APCDs on cancelled Israel and related sailings.
Fuel pricing and foreign exchange rates are negatively impacting EPS by $0.18, compared to prior guidance. In addition, impacted sailings related to Israel deployment is expected to impact the year by approximately $0.03.
Adjusted EPS is expected to be in the range of $6.58 to $6.63 per share.
Third Quarter 2023
The company reported Net Income for the third quarter of $1.0 billion or $3.65 per share compared to Net Income of $33.0 million or $0.13 per share for the same period in the prior year. The company also reported Adjusted Net Income of $1.1 billion or $3.85 per share for the third quarter compared to Adjusted Net Income of $65.8 million or $0.26 per share for the same period in the prior year.
Gross Margin Yields increased 19.1% As-Reported, and Net Yields increased 16.7% in Constant-Currency (16.9% As-Reported) when compared to the third quarter of 2019. Third quarter revenue across North America and Europe itineraries exceeded expectations due to better close-in demand that translated into higher load factors and pricing, as well as continued strength in onboard revenue. Load factor for the third quarter was 110%.
Gross Cruise Costs per APCD increased 14.4% As-Reported, compared to 2019. NCC, excluding Fuel, per APCD increased 10.1% As-Reported and 10.3% in Constant-Currency, compared to 2019. Lower operating expenses, as well as favorable timing, contributed to better-than-expected costs.
Revenue Environment and 2024 Outlook
Bookings remained strong throughout the third quarter, significantly exceeding 2019 levels. Closer-in demand for 2023 sailings exceeded expectations, contributing to higher load factors at higher prices and higher onboard revenue for the third quarter. Consumer spending onboard, as well as pre-cruise purchases, continue to significantly exceed 2019 levels driven by greater participation at higher prices. As of September 30, 2023, the Group’s customer deposit balance was at $5.0 billion.
Demand for 2024 has continued to accelerate, with bookings significantly and consistently outpacing 2019 levels. Booked load factors and rates are higher than all prior years while the booking window has continued to extend. The market response to the company’s new ships, existing hardware, and the expansion of Perfect Day at CocoCay, and Hideaway Beach, has been excellent and further positions the company for strong yield and earnings growth in 2024.
Fourth Quarter 2023
Net Yields are expected to be up 16.2% to 16.7% in Constant-Currency and 15.0% to 15.5% As-Reported, both compared to the fourth quarter of 2019. Continued strong demand for the company’s vacation experiences and strength in onboard revenue contributes to increased yield expectations for the fourth quarter.
NCC, excluding Fuel, per APCD for the quarter are expected to increase 3.9% to 4.4% in Constant-Currency and 3.3% to 3.8% As-Reported, both compared to the fourth quarter of 2019.
Fuel pricing and foreign exchange rates are negatively impacting EPS by $0.15, versus previous expectations. Impacted sailings related to Israel deployment are negatively impacting the quarter by approximately $0.03.
Based on current fuel pricing, interest and currency exchange rates and the factors detailed above, the company expects fourth quarter Adjusted EPS to be $1.05 to $1.10 per share.
“The performance of our business continues to accelerate, driven by strong demand and excellent operational execution,” said Naftali Holtz, chief financial officer at Royal Caribbean Group. “Our formula of moderate yield growth, strong cost discipline, and moderate growth of our fleet delivers a strong financial profile and enhanced margins.”
Princess Cruises announced that the Discovery Princess will homeport in Sydney during the 2025-26 summer Australia season.
The Discovery Princess will be the cruise line’s biggest ship to ever homeport in Australia in its 50-year history of cruising down under. The ship will make its debut in Sydney in October 2025.
Princess Cruises’ President John Padgett said: “Nearly half a century has passed since Princess Cruises introduced the Pacific Princess ship to Sydney’s shores. In commemoration of this milestone, we are delighted to unveil the future deployment of the Discovery Princess today, further solidifying our belief in the Australian market.
“We are confident that both our international and Australian guests will be excited about the spectacular experience aboard Discovery Princess as she sails from Sydney in late 2025.”
Padgett added the cruise line is thrilled to add the Discovery Princess to its Australian fleet for the 2025-26 summer season. The ship will join the Crown Princess and the Grand Princess as part of the summer program, which will be revealed in full next month including the longest World Cruise yet.
“Discovery Princess will continue to set new standards for premium cruising when she sails from Australia in the 2025-26 summer season. She’s an incredible ship with many wonderful features for our guests, from superb cuisine to world-class entertainment and facilities.”
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