Royal Caribbean Cruises Q1 Earnings Miss Estimates As Omicron Affects Business

Royal Caribbean Cruises Ltd RCL reported first-quarter FY22 sales of $1.06 billion versus $42 million last year, missing the consensus of $1.15 billion.
Passenger ticket revenues rose to $651.8 million versus $20.8 million last year.
Cruise operating expense for the quarter was $1.2 billion compared to $283 million last year. The operating loss expanded to $(859.2) million.
The occupancy rate in Q1 was 57.4% versus 37.7% last year.
Royal Caribbean held $1.96 billion in cash and equivalents as of March 31, 2022.
Customer Deposits balance increased by $400 million from last quarter to $3.6 billion.
Adjusted loss per share of $(4.57) missed the analyst consensus for a loss of $(4.47).
"Despite the impact of Omicron earlier in the year and the horrific conflict in Ukraine, we are encouraged by the strong demand for cruising and the steady acceleration in booking volumes," said CEO Jason Liberty.
In total, 54 ships from Royal Caribbean's five brands, or over 90% of its fleet, have resumed operations.
The Group expects to return the full fleet to operations before the summer season of 2022.
Outlook: Royal Caribbean expects to incur $3 billion in capital expenditure for FY22.
The company expects a return to net profit for the second half of 2022.
Price Action: RCL shares are trading lower by 4.45% at $74.35 on the last check Thursday.
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