Royal Caribbean Reports First Quarter Results

Royal Caribbean Cruises Ltd. reports better than expected financial results, updates 2012 guidance

KEY HIGHLIGHTS

Results For the First Quarter of 2012:

• Net income was $47.0 million, or $0.21 per share, versus $78.4 million, or $0.36 per share, in 2011;
• Net Yields increased 7.0% on a Constant-Currency basis (+6.4% As-Reported). Net Cruise Costs ("NCC") excluding fuel increased 5.7% on a Constant-Currency basis (+5.1% As-Reported);
• Consistent with prior guidance, approximately 350 basis points of the Net Yield improvement and approximately 500 basis points of the NCC excluding fuel increase during the quarter related to previously announced deployment initiatives and changes to the company's distribution system.

As expected, booking activity has continued to gradually improve over the last several months. Since the company's earnings announcement on February 2, 2012, the price of oil has risen which, at current levels and net of hedging, would increase bunker expenses $0.15 per share for the year.

 Second Quarter 2012:

• Net Yields are expected to increase 4% to 5% on a Constant-Currency basis (+2% to + 3% As-Reported). Earnings per share are expected to be within a range of ($0.05) to $0.05.
• Full Year 2012:
  • Net Yields are expected to increase 2% to 5% on a Constant-Currency basis (+1 to +4% As-Reported). Earnings per share are expected to be within a range of $1.80 to $2.10.

"First quarter results were satisfactory given the difficult and uncertain operating environment and we continue to see gradual improvement in the demand for our great vacations," said Richard D. Fain, chairman and chief executive officer. Fain continued, "We did not expect the impact of the tragedy to be long term and we are seeing evidence the effects are waning."

As announced in the company's February 2, 2012 earnings release, Net Yields and NCC's this year are being influenced by two unique factors:

Firstly, the company made some changes related to its International distribution system in 2011 which carry on into 2012 and will increase yields. The changes also increase expenses, but the bottom line impact is not material.

Secondly, the company has increased its commitment in certain deployment initiatives which increase revenues but also increase related expenses. For example, China represents a strategic market initiative the company is augmenting significantly.

These factors are referred to collectively throughout this release as "deployment initiatives and changes to the company's distribution system" and unless otherwise noted, are reflected in the company's forward guidance. Also announced in February, these factors are expected to increase Net Yields by approximately 200 basis points and NCC excluding fuel by approximately 300 basis points for