While consumer spending was key for Royal Caribbean's first quarter, demand across the board has led the company to its highest-ever revenue in the second quarter.
Destinations, cruise service providers and the government have been sitting up and taking note of the country’s potential in generating revenues and jobs. Now only if the sailing is smooth.
Royal Caribbean is sailing along on several trends —strong economic conditions, travel interest in experiences and pent-up demand— to get out of the red.
Cruise lines will continue to debut new ships in the near term through a balancing act between refinancing debt and improving profit margins. The high cost of debt will not stop vessels from sailing. The three major cruise lines remain optimistic for demand recovery.
Royal Caribbean seems confident it's smooth sailing now that the pandemic is over and passengers are ready to spend their savings on cruise experiences. But a potential recession could mess with all that.
This lawsuit against major cruise lines, if upheld after inevitable appeals, could open up a floodgate of litigation against airlines and cruise lines that operated in Cuba after the Obama administration cleared the way.