ROYAL CARIBBEAN CRUISES LTD Quarterly Report for Q1 Ended Mar 31, 2022

Summary

Royal Caribbean Cruises Ltd. (RCL) reported a net loss of $1.17 billion for the first quarter of 2022, a slight increase from the $1.13 billion net loss in the same period of 2021. Total revenues significantly increased to $1.06 billion from $42 million, driven by the company's continued return to operations, with nearly 90% of its fleet back in service. Despite the revenue growth, operating expenses also rose substantially due to the ramp-up of operations, increased marketing efforts, and inflationary pressures on fuel and food costs. The company's liquidity remains a key focus, with $3.8 billion in available liquidity as of March 31, 2022. RCL has taken steps to manage its debt maturities, including issuing new notes and securing backstop financing for potential future refinancing. While the company anticipates a return to profitability in the second half of 2022, ongoing uncertainties related to COVID-19, geopolitical events, and inflationary pressures pose material risks to its business, financial position, and results of operations.

Key Highlights

• 1Total revenues surged to $1.06 billion in Q1 2022, up from $42 million in Q1 2021, reflecting the significant ramp-up in cruise operations.
• 2Despite revenue growth, the company reported a net loss of $1.17 billion for Q1 2022.
• 3Approximately 90% of RCL's global capacity was back in service as of March 31, 2022.
• 4Operating expenses increased significantly, driven by the return to service, increased marketing, and rising fuel and food costs.
• 5The company maintained $3.8 billion in liquidity as of March 31, 2022.
• 6Significant debt maturities are scheduled for 2022 ($2.2 billion) and 2023 ($5.7 billion), with refinancing plans in place.
• 7Bookings in Q1 2022 showed improvement, surpassing 2019 levels, though European bookings softened due to the war in Ukraine.

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