MSC Cruises is deploying seven ships in the United States for the winter 2025-26 season, the most for the cruise line to date in the market.
The ships will be based at four homeports, another North American milestone for the brand, in Miami, Port Canaveral, New York City and Galveston, according to a press release.
Highlights of winter 2025-26 include MSC Grandiosa’s debut in the U.S. from Port Canaveral; MSC Cruises’ inaugural season sailing from Galveston; MSC World America’s first winter season sailing from Miami following her debut in April 2025; and most itineraries calling at the enhanced Ocean Cay MSC Marine Reserve.
Rubén A. Rodríguez, president of MSC Cruises USA, said: “The winter 2025-2026 season will mark our largest presence in the U.S. to date, with seven ships sailing from U.S. homeports. We are delighted to provide our guests more choices than ever before when it comes to embarkation ports, ships, itineraries and destinations, making it easy to find the perfect cruise.
“We look forward to introducing MSC Grandiosa to Port Canaveral, launching MSC Seascape from Galveston and offering a new world of cruising aboard MSC World America for our guests embarking in Miami. Combining world-class entertainment, dining and amenities onboard with the fantastic updates coming to Ocean Cay makes for an incredibly exciting future, which is perfect for everyone from first-time cruisers to our most devoted fans.”
The MSC Grandiosa will offer alternating seven-night sailings to the Eastern and Western Caribbean with a selection of three- and four-night cruises aboard the MSC Seashore sailing to Nassau and Ocean Cay.
The season will also mark MSC Cruises’ first sailings from the Port of Galveston, with the MSC Seascape. The ship will operate seven-night Western Caribbean itineraries with visits to Costa Maya, Isla de Roatan and Cozumel.
From Miami, MSC World America will operate seven-night Eastern and Western Caribbean itineraries, calling at Isla de Roatan, Costa Maya, Cozumel and Puerto Plata among other destinations. The Seaside will sail a range of three-, four- and seven-night itineraries while the Divina will sail longer itineraries to the Caribbean.
From New York, the Meraviglia will sail on seven-night itineraries to Florida and The Bahamas, calling in Port Canaveral (Florida), Nassau and Ocean Cay.
Royal Caribbean Group today reported second-quarter Earnings per Share of $1.70 and Adjusted Earnings per Share of $1.82.
These results were significantly better than the company’s guidance due to more robust pricing on closer-in demand and further strength in onboard revenue, the company said in a statement.
As a result of the accelerating demand environment for its vacation experiences, the company is increasing its 2023 Adjusted Earnings per Share guidance by 33% to $6.00 – $6.20.
“Our brands continue to fire on all cylinders, resulting in record yields and second-quarter earnings significantly exceeding our expectations,” said Jason Liberty, president and CEO, of Royal Caribbean Group. “Demand for cruising and our brands is exceptionally strong and we have seen another step change in booking volumes and pricing, leading us to now expect double-digit net yield growth for the full year. We also expect to achieve record Adjusted EBITDA per APCD and Return on Invested Capital this year and are well on our way toward achieving our Trifecta goals.”
Key Highlights
Strong ticket pricing from both North America and Europe itineraries, combined with strength in onboard revenue, led to better-than-expected revenues in the second quarter and a significant increase in the company’s full-year outlook for revenue and earnings.
Second Quarter 2023:
Gross Margin Yields increased 13.1% As-Reported, and Net Yields increased 12.9% in Constant-Currency (12.6% As-Reported), both compared to the second quarter of 2019.
Gross Cruise Costs per Available Passenger Cruise Day (“APCD”) increased by 10.9% As-Reported, and Net Cruise Costs (“NCC”), excluding Fuel, per APCD increased by 9.0% in Constant-Currency (8.6% As-Reported), both compared to the second quarter of 2019. The favourable timing of operating expenses was offset by the increase in stock compensation expense due to the rise in share price and expected financial performance.
Total revenues were a record $3.5 billion, Net Income was $458.8 million or $1.70 per share, Adjusted Net Income was $491.7 million or $1.82 per share, Adjusted EBITDA was a record $1.2 billion and Operating Cash Flow was $1.4 billion.
Full Year 2023 Outlook:
Net Yields are expected to increase 11.5% to 12.0% in Constant-Currency and As-Reported, compared to 2019.
NCC, excluding Fuel, per APCD is expected to be up approximately 7.0% in Constant-Currency (6.7% As-Reported), compared to 2019. The increase in costs, relative to previous guidance, is driven by an increase in stock compensation expense due to the rise in share price and expected financial performance.
Adjusted Earnings per Share for the entire year are expected to be in the range of $6.00 to $6.20 per share.
Third Quarter 2023 Outlook:
Net Yields are expected to increase 13.5% to 14.0% in Constant-Currency (14.0% to 14.5% As-Reported), compared to the third quarter of 2019.
NCC, excluding Fuel, per APCD is expected to increase by approximately 11.2% in Constant-Currency and As-Reported, compared to the third quarter of 2019. Approximately half of the cost increase compared to 2019 is related to structural costs, a timing shift of operating expenses from the second quarter, and an increase in stock compensation expense.
Adjusted Earnings per Share for the third quarter are expected to be in the range of $3.38 to $3.48 per share.
Second Quarter 2023
The company reported Net Income for the second quarter of $458.8 million or $1.70 per share compared to Net Loss of $(0.5) billion or $(2.05) per share for the same period in the prior year. The company also reported an Adjusted Net Income of $491.7 million or $1.82 per share for the second quarter compared to an Adjusted Net Loss of $(0.5) billion or $(2.08) per share for the same period in the prior year.
Second-quarter revenue significantly exceeded the company’s guidance due to higher pricing and higher shipboard revenue across the company’s key itineraries, including the Caribbean and Europe. The load factor for the second quarter was 105%.
Gross Cruise Costs per APCD increased by 10.9% As-Reported, compared to 2019. NCC, excluding Fuel, per APCD increased by 8.6% As-Reported and 9.0% in constant currency, compared to 2019. Favourable timing of operating expenses drove NCC lower, however, it was offset entirely by an increase in stock compensation expense-related costs due to the significant rise in share price and expected financial performance.
Update on Bookings
Booking volumes in the second quarter remained significantly higher than in the corresponding period in 2019 and at record pricing levels. Demand for 2023 sailings has significantly exceeded expectations and bookings for 2024 sailings are up significantly versus all prior years at record prices. Demand from the North American consumer has remained incredibly strong throughout the year, and booking volumes from European consumers who are booking European cruises this summer have accelerated.
The further increase in yield expectations for the year is the result of higher pricing and onboard revenue expectations for key itineraries, particularly in North America and Europe. Consumer spending onboard, as well as pre-cruise purchases, continue to significantly exceed 2019 levels driven by greater participation at higher prices.
As of June 30, 2023, the Group’s customer deposit balance was at a record-high $5.7 billion.
Moving two former Costa Cruises ships originally built for sailing Asia to the Carnival Cruise Line brand in North America has been an instant success, said John Weinstein, CEO of Carnival Corporation, speaking on the company’s second-quarter earnings call.
Weinstein said that Carnival Cruise Line will amount to about a third of Carnival Corporation capacity in 2023 and 2024, compared to approximately 25 per cent pre-pandemic.
The Venezia debuted in New York earlier in June and is the first of two ships that will operate under the ‘Fun Italian Style’ branding, with the Firenze set to join the fleet next year, sailing from Long Beach.
“These transfers are part of our portfolio management strategy, which is contributing to Carnival Cruise Lines’s capacity, growing 22 per cent more than pre-pause expectations. And Costa’s capacity is reduced by 36 per cent, compared to pre-pause expectations,” Weinstein explained.
“The added capacity to Carnival Cruise Line will not only generate outsized returns for the company but rightsizing the Costa brand is also having these desired effects of supporting its revenue profile confirmed by recent booking and pricing trends,” he said.
“We remain committed to our strategy of owning a portfolio of world-class brands, many of which are truly dedicated to specific markets and it’s clear the strength of this portfolio is now shifting into high gear.”
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