ROYAL CARIBBEAN CRUISES LTD Annual Report, Year Ended Dec 31, 2008

Royal Caribbean Cruises Ltd. (RCL) reported its 2008 annual results amidst a challenging global economic environment. The company experienced revenue growth driven by increased capacity, with total revenues reaching $6.5 billion, up 6.2% from 2007. This growth was primarily attributed to the introduction of new ships and a slight increase in gross yields. However, net income declined to $573.7 million from $603.4 million in the prior year, resulting in diluted earnings per share of $2.68 compared to $2.82 in 2007. This decline was influenced by rising operating expenses, particularly fuel costs, which increased significantly year-over-year. In response to the economic downturn, RCL took measures to preserve liquidity, including discontinuing its quarterly dividend, curtailing non-shipbuild capital expenditures, and reducing its workforce. The company also highlighted its ongoing strategy to expand passenger sourcing outside of North America to diversify its customer base and drive future growth. Looking ahead, RCL anticipated continued economic challenges impacting demand and pricing in 2009, projecting a decline in net yields.