Royal Caribbean Cruises had announced record net income for the fourth quarter 2007 of $70.8 million, or $0.33 per share, compared to net income of $46.6 million, or $0.22 per share, in 2006. Revenues were better than expected, driven by stronger close-in bookings, while fuel costs were higher due to rising fuel prices. Revenues for the fourth quarter 2007 increased to $1.5 billion from revenues of $1.2 billion in the fourth quarter 2006.
Net income for the full year 2007 was $603.4 million, or $2.82 per share, compared to net income of $633.9 million, or $2.94 per share, for the full year 2006. Revenues for the full year 2007 increased to $6.1 billion from revenues of $5.2 billion for the full year 2006.
"It is very gratifying to see such a strong performance, especially in light of the broader consumer and economic environment," said Richard D. Fain, Chairman and Chief Executive Officer. "We are particularly pleased with the solid yield performance of our brands, which produced such healthy earnings despite significantly higher fuel costs." Higher fuel prices increased operating costs by $45 million in 2007, which reduced earnings per share by $0.21.
Fain continued, "Despite pressures on consumer spending, yields for the year were consistent with our original expectations, growing 0.3% on a comparable basis (i.e. excluding Pullmantur). This is a testament to the strength and momentum of our products."