Total Revenue

10.4% " "

The 10.4% increase reflects a continuation of earlier capacity expansions, higher ticket pricing, and stronger onboard spending observed in previous periods (e.g., a $842 million increase in Q1 2024 " and a $271 million increase in Q1 2025 " " " ), further boosted by improved close-in demand pricing and lower costs. " "

Passenger Ticket Revenues

10.8% " "

The 10.8% growth builds on prior strong gains from increased ticket prices and capacity enhancements—such as the 34.0% increase in Q1 2024 (a $645 million jump due to higher fares and a 9.4% capacity boost " " ) and the 7.9% rise in Q1 2025 driven by yield and capacity growth " " —indicating sustained demand and favorable market pricing. " "

Onboard and Other Revenues

9.5% " "

The 9.5% increase is supported by ongoing capacity growth and improved yield strategies. Prior periods saw a 19.9% jump in Q1 2024 primarily from a 9.4% capacity increase and pricing improvements " , and a 5.8% gain in Q1 2025 from similar factors " ; these combined initiatives are now further enhancing onboard spending revenue. " "

Net Yield Growth

FY 2025

2.6% to 4.6% " "

3.5% to 4.0% " "

raised

Adjusted EPS

FY 2025

$14.55 to $15.55 " "

$15.41 to $15.55 " " "

raised

Capacity Growth

FY 2025

5.5% "

6% "

raised

Net Cruise Costs (Excluding Fuel)

FY 2025

-0.1% to +0.9% "

+0.3% "

no change

Fuel Expense

FY 2025

$1.14 billion (59% hedged) "

$1.14 billion (66% hedged) "

no change

Adjusted EBITDA Growth

FY 2025

15% "

17% "

raised

Leverage

FY 2025

no prior guidance

mid-two turns "

no prior guidance

Net Yield Growth

Q3 2025

no prior guidance

2% to 2.5% " " "

no prior guidance

Capacity Growth

Q3 2025

no prior guidance

3% "

no prior guidance

Net Cruise Costs (Excluding Fuel)

Q3 2025

no prior guidance

6% to 6.5% "

no prior guidance

Adjusted EPS

Q3 2025

no prior guidance

$5.55 to $5.65 "

no prior guidance

Consumer Demand

Q1 2025 highlighted strong demand with record WAVE season performance, high consumer confidence, and willingness to spend on leisure travel. " " Q4 2024 noted very positive sentiment driven by robust wealth, strong labor markets, and elevated spending. " Q3 2024 reported continued elevated demand patterns with strong close‐in bookings and onboard revenue. " "

Q2 2025 reported robust consumer sentiment with approximately 75% of consumers planning to spend the same or more on travel, increased close-in bookings, and higher onboard spending—all powered by new ship demand and young demographic appeal. " " " " "

Consistent high consumer demand persists while booking behavior evolves toward spontaneity and an increasing focus on younger demographics.

Yield Growth

Q1 2025 reported a robust 5.6% net yield increase and full-year expectations between 2.6%–4.6%. " Q4 2024 delivered double-digit yield growth (11.6% in 2024) with lowered guidance for 2025 (2.5%–4.5%). " " " Q3 2024 showed 7.9% YOY yield growth, setting a high benchmark. " "

Q2 2025 achieved a 5.2% net yield growth in constant currency, but noted moderation ahead due to challenges like the operational ramp-up of new ships, with Q3 expected to face a headwind from these timing issues. " " " "

After historically robust yield performance, there is a shift toward more moderate yield growth influenced by new ship integration and ramp-up timing challenges.

Pricing Strategy

Q1 2025 emphasized premium onboard spending, strong customer value perceptions, and promotional tactics that drove quality demand. " " Q4 2024 underlined strong pricing with higher APDs and innovative private destination packages. " " Q3 2024 discussed stable pricing enhanced through AI-driven yield management. "

Q2 2025 continued a focus on premium pricing strategies using strong digital channels that support high onboard and pre-cruise spending, contributing to improved APDs and price integrity. " "

The company consistently emphasizes a strong value proposition and premium pricing across its channels, now increasingly leveraging digital integration without major shifts in sentiment.

New Ship and Destination Pipeline

Q1 2025 announced major fleet expansions including Star of the Seas, Celebrity Xcel, and Celebrity River along with exclusive private destinations. " " Q4 2024 introduced new initiatives such as Celebrity River Cruises and expanded destination strategies including Perfect Day Mexico. " " Q3 2024 focused on the success of Icon class expansion and announced additional new destinations. " " "

Q2 2025 emphasized strong demand for new ships, notably Star of the Seas and Celebrity XL, and highlighted robust early demand for Royal Beach Club Paradise Island, reinforcing the focus on exclusive destination-led experiences. " " "

The focus on fleet and destination innovation remains robust, though Q2 2025 places greater operational emphasis on new ship performance while earlier periods also stressed expansion into river cruising and other private destinations.

Operational and Ramp-Up Challenges

Q1 2025 pointed to timing issues, noting that the late entry of Star of the Seas was expected to impact Q3 yield due to a slower ramp-up. " " Q4 2024 mentioned timing aspects regarding dry dock days and ship integrations. " " Q3 2024 noted supply chain and dry dock cost timing challenges affecting operations. "

Q2 2025 provided detailed discussion on new ship challenges, with Star of the Seas and Celebrity XL facing ramp-up periods that created yield headwinds (e.g., 150 basis points drag in Q3) and issues related to dry dock timing. " " "

Recurring integration and timing challenges persist, particularly around new ship deliveries and ramp-up periods, underscoring the company’s ongoing need to balance operational excellence with growth initiatives.

Customer Loyalty and Engagement

Q1 2025 showcased strong loyalty performance with nearly 40% of bookings from loyalty members and robust digital integration across platforms. " " Q4 2024 introduced a reciprocity program across brands along with over 300 digital enhancements to the guest experience. " " Q3 2024 emphasized increased onboard engagement driven by AI and pre-cruise purchases. "

Q2 2025 continued to stress digital integration with nearly 50% of onboard purchases via the mobile app and strong loyalty program performance, while also noting that a cobranded credit card program is under development to further enhance customer engagement. " " "

Loyalty and digital engagement have been consistently strengthened; the initiatives now lean more heavily on mobile adoption and data-driven personalization to enrich guest experiences.

Capital Expenditure Commitments and Financial Risk

Q1 2025 provided general comments on strong financial positioning but few specific CapEx details. " " Q4 2024 detailed a $5 billion CapEx commitment (split between new builds and non-new builds) and highlighted integration cost risks with new destination projects. " Q3 2024 discussed strategic investments such as Perfect Day Mexico and dry dock cost challenges, along with key refinancing actions. " "

Q2 2025 reaffirmed a $5 billion CapEx commitment with clear allocation toward new ships like Star of the Seas and Celebrity XL, along with non-ship investments; the discussion emphasized strong cash flow generation to support these investments while managing integration cost risks (e.g., Costa Maya port acquisition). " "

The company remains committed to high levels of capital investment, supported by its robust cash flow, while continuing to manage integration costs; this strategy has been consistent with only slight adjustments over time.

Capital Structure and Leverage

Q1 2025 stressed strong liquidity with $4.5 billion and plans to push leverage below 3x. " " Q4 2024 noted a liquidity position of $4.1 billion and forecast further reduction in leverage to mid–to-high 2x. " Q3 2024 celebrated a return to a fully unsecured capital structure, with significant refinancing reducing debt costs and leverage soon falling within target metrics. " "

Q2 2025 reported an improved liquidity position of $7.1 billion, maintained investment-grade ratings, and outlined proactive debt reduction strategies targeting leverage at mid-two turns by year-end, reflecting continued strength in the balance sheet. "

There is a clear progression toward improved capital structure and reduced leverage, with liquidity strengthening considerably over time and consistent emphasis on investment-grade metrics and proactive debt management.

Macroeconomic Uncertainty Impact

Q1 2025 acknowledged heightened macroeconomic uncertainty by widening guidance ranges due to geopolitical noise, though confident consumer behavior helped offset concerns. " " " Q4 2024 downplayed uncertainty by citing strong fundamentals such as wealth, wage growth, and low unemployment. " " Q3 2024 further emphasized positive macro trends supporting leisure spending. "

Q2 2025 reflected a return to normal guidance practices with much less emphasis on geopolitical or macroeconomic uncertainty, indicating that earlier concerns have largely subsided. "

Initial macroeconomic uncertainty noted in Q1 has diminished considerably over time as favorable economic fundamentals reassert themselves, leading to a more normalized outlook in Q2 2025.

Cost Pressures and Margin Compression

Q1 2025 noted modest net cost increases (e.g., 0.1%) and strong margins (with EBITDA margin improvements) despite expected headwinds in Q3 due to new venture ramp-ups. " " Q4 2024 reported higher stock-based compensation impacting costs and slightly lower yield growth expectations, while still emphasizing cost control. " " " Q3 2024 mentioned challenges from dry dock and integration costs but maintained focus on margin-driven investments. " "

Q2 2025 discussed ongoing cost pressures from new ship integrations and venture ramp-ups, with net cruise cost guidance for the full year at around 0.3% growth; these pressures are partially offset by effective cost discipline and fuel hedging strategies, though yield headwinds remain. " " "

Persistent cost pressures due to new investments and slower yield ramp-up continue to be a concern, but disciplined cost management practices help mitigate margin compression; overall, challenges remain similar with slight variations in magnitude over time.