ROYAL CARIBBEAN CRUISES LTD Annual Report, Year Ended Dec 31, 2010

In 2010, Royal Caribbean Cruises Ltd. (RCL) demonstrated a notable recovery and growth, with total revenues increasing by 14.6% to $6.8 billion, driven by a 11.1% increase in capacity and a 4.2% rise in Net Yields. This strong performance, coupled with effective cost management leading to a 1.8% decrease in Net Cruise Costs per Available Passenger Cruise Day (APCD), resulted in a significant rebound in net income to $547.5 million, or $2.51 per diluted share, compared to $162.4 million, or $0.75 per diluted share, in 2009. Key factors contributing to this improvement included the full year of operations for the "Oasis of the Seas" and the introduction of "Celebrity Eclipse" and "Allure of the Seas," alongside positive pricing and occupancy trends. The company's strategic focus on fleet modernization and international market expansion continues. RCL is investing in new, state-of-the-art vessels and expanding its global brand presence, particularly in Asia, Australia, and South America, to diversify its customer base and enhance returns. Financially, RCL improved its liquidity position in 2010 and received credit rating upgrades from both Standard & Poor's and Moody's, signaling a positive trajectory towards returning to investment-grade status. Looking ahead to 2011, RCL anticipates continued growth in Net Yields and a moderate increase in Net Cruise Costs, supported by ongoing fleet enhancements and strategic market development.