By Nicholas G. Miller

Royal Caribbean reported higher third-quarter profit, saying consumers are still willing to spend on vacations and travel, even as the broader spending backdrop weakens.

"Consumers continue to prioritize experiences and make room in their budgets for meaningful vacations," said Chief Executive Jason Liberty, adding the company was seeing "positive sentiment towards travel and leisure and continued growth and spend."

The company, however, said the fourth quarter is being affected by recent adverse weather and the unplanned extension of the temporary closure at one of its destinations in Labadee, Haiti. Royal Caribbean recently canceled all visits through April 2026 to the destination due to safety concerns in Haiti.

Shares recently fell 9.2%, to $290.90, midday Tuesday.

Royal Caribbean said its independent research shows three-quarters of consumers intend to spend the same or more on vacations over the next 12 months, a level that has remained consistent even as the broader consumer environment has worsened.

"The consumer or our guest is strong. They have great jobs. They have great balance sheets, bank accounts. And they have a strong desire to vacation and build experiences and memories with their friends and family," Liberty said. Even if they aren't spending quite as much as last year, consumers are still "willing to pay up," he added.

The Miami company said U.S. demand had persisted across both lower-end and upper-end markets, ranging from the company's family segment to its ultra-luxury segment.

For the third-quarter, the cruise company posted net income of $1.58 billion, or $5.74 a share, up from $1.11 billion, or $4.21 a share, the year prior.

Adjusted earnings were $5.75 a share, beating analysts' expectation of $5.69, according to FactSet.

Sales rose to $5.14 billion from $4.89 billion. Wall Street expected $5.17 billion.

Royal Caribbean said in its earnings call that it was seeing an increase in market supply for cruises in the Caribbean and, as a result, a slight uptick in promotional activity in that market.

It guided for full-year adjusted earnings of $15.58 to $15.63 a share, up from its previous forecast of $15.41 to $15.55 a share. That is below Wall Street's expectation of $15.70.

Write to Nicholas G. Miller at nicholas.miller@wsj.com

(END) Dow Jones Newswires

October 28, 2025 13:31 ET (17:31 GMT)

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