Royal Caribbean Reports Second Quarter Results

MIAMI -

Royal Caribbean Cruises Ltd. (NYSE: OSE; RCL) today announced earnings for the second quarter of 2009 and provided updated guidance for the third quarter and full year.

Key Highlights — Second quarter 2009 net loss was US$35.1 million, or US$0.16 per share, compared to net income of US$84.7 million, or US$0.40 per share in 2008. The results were consistent with the company’s most recent disclosures. — Net Yields for the second quarter decreased 17.9% versus 2008 and declined 14.2% on a constant dollar basis. — Net Cruise Costs per APCD (”NCC”) for the second quarter decreased 11.5% versus 2008 and declined 8.5% on a constant dollar basis. NCC, excluding bunker for the second quarter declined 8.4% versus 2008 and declined 4.7% on a constant dollar basis. — Earnings per share (”EPS”) are expected to be between US$0.95 and US$1.00 in the third quarter and between US$0.70 and US$0.80 per share for the full year. — The company projects net yields to decline approximately 18% in the third quarter and approximately 14% for the full year. On a constant dollar basis net yields are projected to decline 15% - 16% in the third quarter and 11% - 12% for the full year. — The H1N1 virus impacted EPS by approximately US$0.05 in the second quarter and is expected to have a US$0.18 and US$0.27 impact on the third quarter and full year, respectively.

“Obviously, the economy continues to be a challenge and the impact from the publicity surrounding H1N1 has been very frustrating,” said Richard D. Fain, chairman and chief executive officer. “However, the demand environment has shown remarkable stability and, with the extraordinary performance of our newest vessels and easier comparables, we look forward to improving yields in 2010. In the meantime, we remain vigilantly focused on cost management and liquidity,” Fain continued.

Second Quarter 2009 Results

Royal Caribbean Cruises Ltd. today announced a net loss for the second quarter 2009 of US$35.1 million, or US$0.16 per share, compared to net income of US$84.7 million, or US$0.40 per share, in 2008. The loss included approximately US$0.05 per share from the impact of the H1N1 virus and approximately US$0.11 from non-operating expenses related to foreign exchange adjustments and hedging ineffectiveness.

Revenues were US$1.3 billion, versus US$1.6 billion in the second quarter of 2008. Net Yields decreased 17.9% from the prior year and declined 14.2% on a constant dollar basis. The H1N1 virus had a negative impact on yields of approximately one percentage point.

NCC decreased 11.5% from the prior year and 8.5% on a constant dollar basis. NCC, excluding fuel declined 8.4% from the prior year and 4.7% on a constant dollar basis.

Fuel costs benefited from reductions in at-the-pump pricing and continued energy reduction initiatives and were US$6 million better than the amount included in the April guidance. Fuel consumption was 297.4 thousand metric tons at an average cost of US$459 per metric ton.

H1N1 Impact

The impact of the H1N1 virus was somewhat higher than originally estimated and included: itinerary modifications and reduced demand for Royal Caribbean International vessels that visit Mexican ports; a decision to delay the launch of Pullmantur’s Pacific Dream as a new product targeting Mexican nationals until 2010 and a significant reduction in Pullmantur’s tour capacity in Mexico. Pullmantur’s Ocean Dream subsequently had two voyages disrupted due to an H1N1 infection among some of its crew members and the vessel has experienced reduced demand as a result of the publicity in Spain.

The company summarized the impact of H1N1 as follows, US$0.13 per share due to cancelled voyages and tours; US$0.05 per share resulting from changes to itineraries and an estimated US$0.09 per share due to reduced demand specifically related to Pullmantur’s Ocean Dream and Royal Caribbean International’s Mexican itineraries.

Recognizing that Pullmantur is reported on a two-month lag, the company estimated that the impact of the H1N1 virus will be approximately US$0.18 per share in the third quarter, US$0.04 in the fourth and US$0.27 for the full year.

The impact of the H1N1 virus on net yields will be slightly more than two and one-half percentage points in the third quarter, around one-half of a percentage point in the fourth quarter and slightly more than one percentage point for the full year.

Revenue Environment

Aside from the products directly impacted by the H1N1 virus, the company reported that summer bookings have been stable for all products and source markets, with the exception of Spain. “Consumers are continuing to book their vacations very close-in,” said Brian J. Rice, executive vice president and chief financial officer, “but we are seeing healthy volumes and have even been able to take some measured price increases for several of our peak season sailings.”

The company also reported that new bookings for the fall have recently begun to outpace the same time last year; however booked load factors and pricing remain behind last year’s levels. “Given the new booking cycle there is still uncertainty about the fall season. However, the same patterns we have seen all year seem to be developing for the fall,” Rice continued.

Commenting on the first quarter of 2010 bookings, Rice said, “With slightly more than 1/3 of our inventory sold at levels well above where we ended the first quarter of ‘09, we are encouraged that the strength of our new ships coupled with a continued stable booking environment can provide the platform for improving yields.”

The company projects net revenue yields to decline approximately 18% in the third quarter and down approximately 14% for the full year. On a constant dollar basis net revenue yields are projected to decline 15% - 16% in the third quarter and approximately 11% - 12% for the full year.

Expense Guidance

NCC are forecasted to decrease approximately 10% for the year and approximately 11% for the third quarter. On a constant dollar basis NCC are forecasted to decline 9% to 10% in the third quarter and 8% to 9% for the full year.

Excluding fuel, NCC are expected to decline 6% to 7% for the year and approximately 5% for the third quarter. On a constant dollar basis NCC, excluding fuel are forecasted to decline approximately 3% in the third quarter and 4% to 5% for the full year.

Fuel Expense

The company does not forecast fuel prices and its cost calculations are based on current at-the-pump prices net of hedging impacts. Based on today’s fuel prices the company has included US$591 million and US$145 million of fuel expense in its full year and third quarter 2009 guidance, respectively.

The company is currently 49% hedged for the third quarter and 50% for the full year. Because of the relatively low fuel prices available, the company has recently increased its hedges in 2010 to 50% and has hedged approximately 45% of forecasted 2011 consumption.

(All currency is in US$ unless otherwise noted) Third Quarter 2009 Full Year 2009 —————— ————– Fuel Consumption 315,000 mt 1,220,000 mt Fuel Expenses $ 145 Million $ 591 Million Percent Hedged (forward consumption) 49% 50% Impact of 10% change in fuel Prices $ 7 Million $ 15 Million

Forward Guidance Summary

The company provided the following estimates for the third quarter and full year 2009. Except for earnings per share, all estimates are as compared to the third quarter and full year 2008, respectively.

Third Quarter 2009 Full Year 2009 —————— ————– Earnings Per Share $0.95 - $1.00 $0.70 - $0.80 Capacity 3.1% 5.2% Net Yields Approx. (18%) Approx. (14%) Net Cruise Costs per APCD Approx. (11%) Approx. (10%) Net Cruise Costs per APCD, excluding Fuel Approx. (5%) (6%) - (7%) Depreciation and Amortization Approx. $145 Million $565 to $570 Million Interest Expense Approx. $75 Million Approx. $310 Million

Liquidity and Financing Arrangements

As of June 30, 2009, liquidity was $0.9 billion, including cash and the undrawn portion of the company’s unsecured revolving credit facility. During the second quarter the company repaid approximately $325 million of scheduled debt maturities.

In early July the company completed a $300 million senior unsecured notes offering with a 6-year tenor. Funds from the offering were used to reduce the amount outstanding on the company’s revolving credit facility.

Capital Expenditures and Capacity Guidance

Based on current ship orders, projected capital expenditures for 2009, 2010, 2011 and 2012, estimates are unchanged at $2.1 billion, $2.2 billion, $1.0 billion, and $1.0 billion, respectively.

Projected capacity increases for the same four years are 5.2%, 12.7%, 8.6%, and 2.8%, respectively. The company’s capacity figures have been updated for deployment modifications due to the H1N1 outbreak.

Conference Call Scheduled

The company has scheduled a conference call at 9 a.m. Eastern Daylight Time today to discuss its earnings. This call can be heard, either live or on a delayed basis, on the company’s investor relations web site at www.rclinvestor.com.

Terminology

Available Passenger Cruise Days (”APCD”)

APCDs are our measurement of capacity and represent double occupancy per cabin multiplied by the number of cruise days for the period.

Gross Cruise Costs

Gross Cruise Costs represent the sum of total cruise operating expenses plus marketing, selling and administrative expenses.

Gross Yields

Gross Yields represent total revenues per APCD.

Net Cruise Costs

Net Cruise Costs represent Gross Cruise Costs excluding commissions, transportation and other expenses and onboard and other expenses. In measuring our ability to control costs in a manner that positively impacts net income, we believe changes in Net Cruise Costs to be the most relevant indicator of our performance. We have not provided a quantitative reconciliation of projected Gross Cruise Costs to projected Net Cruise Costs due to the significant uncertainty in projecting the costs deducted to arrive at this measure. Accordingly, we do not believe that reconciling information for such projected figures would be meaningful.

Net Debt-to-Capital

Net Debt-to-Capital is a ratio which represents total long-term debt, including current portion of long-term debt, less cash and cash equivalents (”Net Debt”) divided by the sum of Net Debt and total shareholders’ equity. We believe Net Debt and Net Debt-to-Capital, along with total long-term debt and shareholders’ equity are useful measures of our capital structure.

Net Revenues

Net Revenues represent total revenues less commissions, transportation and other expenses and onboard and other expenses.

Net Yields

Net Yields represent Net Revenues per APCD. We utilize Net Revenues and Net Yields to manage our business on a day-to-day basis as we believe that it is the most relevant measure of our pricing performance because it reflects the cruise revenues earned by us net of our most significant variable costs, which are commissions, transportation and other expenses and onboard and other expenses. We have not provided a quantitative reconciliation of projected Gross Yields to projected Net Yields due to the significant uncertainty in projecting the costs deducted to arrive at this measure. Accordingly, we do not believe that reconciling information for such projected figures would be meaningful.

Occupancy

Occupancy, in accordance with cruise vacation industry practice, is calculated by dividing Passenger Cruise Days by APCD. A percentage in excess of 100% indicates that three or more passengers occupied some cabins.

Passenger Cruise Days

Passenger Cruise Days represent the number of passengers carried for the period multiplied by the number of days of their respective cruises.

Royal Caribbean Cruises Ltd. is a global cruise vacation company that operates Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Cruises and CDF Croisieres de France. The company has a combined total of 38 ships in service and five under construction. It also offers unique land-tour vacations in Alaska, Asia, Australia, Canada, Europe, Latin America and New Zealand. Additional information can be found on www.royalcaribbean.com, www.celebrity.com, www.pullmantur.es, www.azamaracruises.com or www.rclinvestor.com.

Certain statements in this news release are forward-looking statements. Words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “goal”, “intend”, “may”, “plan”, “project”, “seek”, “should”, “will”, and similar expressions are intended to help identify these forward-looking statements. Forward-looking statements do not guarantee future performance and may involve risks, uncertainties and other factors, which could cause our actual results, performance or achievements to differ materially from the future results, performance or achievements expressed or implied in those forward-looking statements. Examples of these risks, uncertainties and other factors include, but are not limited to the following: the adverse impact of the continuing worldwide economic downturn on the demand for cruises, the impact of the economic downturn on the availability of our credit facility and our ability to generate cash flows from operations or obtain new borrowings from the credit or capital markets in amounts sufficient to satisfy our capital expenditures, debt payment requirements and other financing needs, the impact of disruptions in the global financial markets on the ability of our counterparties and others to perform their obligations to us, the uncertainties of conducting business internationally and expanding into new markets, the volatility in fuel prices an foreign exchange rates, the impact of changes in operating and financing costs, including changes in foreign currency, interest rates, fuel, food, payroll, airfare for our shipboard personnel, insurance and security costs, impact of problems encountered at shipyards and their subcontractors including insolvency or financial difficulties, vacation industry competition and changes in industry capacity and overcapacity, the impact of tax and environmental laws and regulations affecting our business or our principal shareholders, the impact of changes in other laws and regulations affecting our business, the impact of pending or threatened litigation, enforcement actions, fines or penalties, the impact of delayed or cancelled ship orders, the impact of emergency ship repairs, including the related lost revenue, the impact on prices of new ships due to shortages in available shipyard facilities, component parts and shipyard consolidations, negative incidents involving cruise ships including those involving the health and safety of passengers, reduced consumer demand for cruises as a result of any number of reasons, including geo-political and economic uncertainties and the unavailability or cost of air service, the international political climate, fears of terrorist and pirate attacks, armed conflict and the resulting concerns over safety and security aspects of traveling, the impact of the spread of contagious diseases, the impact of changes or disruptions to external distribution channels for our guest bookings, the loss of key personnel or our inability to retain or recruit qualified personnel, changes in our stock price or principal shareholders, uncertainties of a foreign legal system as we are not incorporated in the United States, the unavailability of ports of call, weather, and other factors described in further detail in Royal Caribbean Cruises Ltd.’s filings with the Securities and Exchange Commission. The above examples are not exhaustive and new risks emerge from time to time. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, certain financial measures in this news release constitute non-GAAP financial measures as defined by Regulation G. A reconciliation of these items can be found on our investor relations website at www.rclinvestor.com.

Financial Tables Follow

ROYAL CARIBBEAN CRUISES LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except per share data) Quarter Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Passenger ticket revenues $956,593 $1,140,077 $1,905,863 $2,177,980 Onboard and other revenues 392,422 443,697 768,754 834,879 ——- ——- ——- ——- Total revenues 1,349,015 1,583,774 2,674,617 3,012,859 ——— ——— ——— ——— Cruise operating expenses: Commissions, transportation and other 232,552 284,735 468,381 542,675 Onboard and other 112,523 117,315 195,757 195,835 Payroll and related 165,466 163,343 334,212 317,582 Food 80,913 82,096 166,316 165,098 Fuel 136,488 174,299 291,363 332,533 Other Operating 237,493 269,211 461,742 499,462 ——- ——- ——- ——- Total cruise operating expenses 965,435 1,090,999 1,917,771 2,053,185 Marketing, selling and administrative expenses 190,593 196,548 379,750 401,489 Depreciation and amortization expenses 137,925 127,277 277,781 251,667 ——- ——- ——- ——- Operating Income 55,062 168,950 99,315 306,518 —— ——- —— ——- Other income (expense) Interest income 1,159 3,015 2,889 5,523 Interest expense, net of interest capitalized (68,327) (81,086) (147,789) (159,034) Other (expense) income (22,980) (6,130) (25,739) 7,349 ——- —— ——- —– (90,148) (84,201) (170,639) (146,162) ——- ——- ——– ——– Net (Loss) Income $ (35,086) $ 84,749 $ (71,324) $160,356 ======== ======= ======== ======== (Loss) Earnings Per Share: Basic $ (0.16) $ 0.40 $ (0.33) $ 0.75 ====== ===== ====== ===== Diluted $ (0.16) $ 0.40 $ (0.33) $ 0.75 ====== ===== ====== ===== Weighted-Average Shares Outstanding: Basic 213,780 213,482 213,734 213,404 ======= ======= ======= ======= Diluted 213,780 214,280 213,734 214,398 ======= ======= ======= ======= STATISTICS Quarter Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 —- —- —- —- Passengers Carried 937,610 989,722 1,911,276 2,021,390 Passenger Cruise Days 6,738,213 6,619,144 13,560,581 13,232,069 APCD 6,585,128 6,362,851 13,328,584 12,694,950 Occupancy 102.3% 104.0% 101.7% 104.2%

ROYAL CARIBBEAN CRUISES LTD. CONSOLIDATED BALANCE SHEETS (in thousands, except share data) As of ———————– June 30, December 31, 2009 2008 ———– ———– (unaudited) Assets Current assets Cash and cash equivalents $ 309,758 $ 402,878 Trade and other receivables, net 241,224 271,287 Inventories 102,520 96,077 Prepaid expenses and other assets 145,038 125,160 Derivative financial instruments 111,921 81,935 ——- —— Total current assets 910,461 977,337 Property and equipment, net 13,593,681 13,878,998 Goodwill 781,609 779,246 Other assets 1,050,906 827,729 ——— ——- $16,336,657 $16,463,310 =========== =========== Liabilities and Shareholders’ Equity Current liabilities Current portion of long-term debt $723,283 $471,893 Accounts payable 262,647 245,225 Accrued interest 80,952 128,879 Accrued expenses and other liabilities 493,792 687,369 Customer deposits 1,109,322 968,520 Hedged firm commitments 192,693 172,339 ——- ——- Total current liabilities 2,862,689 2,674,225 Long-term debt 6,045,388 6,539,510 Other long-term liabilities 379,745 446,563 Commitments and contingencies Shareholders’ equity Preferred stock ($0.01 par value; 20,000,000 shares authorized; none outstanding) - - Common stock ($0.01 par value; 500,000,000 shares authorized; 224,104,859 and 223,899,076 shares issued, June 30, 2009 and December 31, 2008, respectively) 2,241 2,239 Paid-in capital 2,962,610 2,952,540 Retained earnings 4,521,205 4,592,529 Accumulated other comprehensive loss (23,517) (319,936) Treasury stock (10,308,683 and 11,076,701 common shares at cost, June 30, 2009 and December 31, 2008, respectively) (413,704) (424,360) ——– ——– Total shareholders’ equity 7,048,835 6,803,012 ——— ——— $16,336,657 $16,463,310 =========== =========== ROYAL CARIBBEAN CRUISES LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands) Six Months Ended June 30, —————– 2009 2008 —- —- Operating Activities Net (loss) income $(71,324) $160,356 Adjustments: Depreciation and amortization 277,781 251,667 Changes in operating assets and liabilities: Decrease in trade and other receivables, net 46,842 68,149 Increase in inventories (6,312) (20,341) Increase in prepaid expenses and other assets (20,197) (47,747) Increase in accounts payable 17,670 26,604 Decrease in accrued interest (47,927) (41,471) (Decrease) increase in accrued expenses and other liabilities (23,453) 26,328 Increase in customer deposits 131,792 354,894 Other, net 37,986 (17,008) —— ——- Net cash provided by operating activities 342,858 761,431 ——- ——- Investing Activities Purchases of property and equipment (323,589) (1,313,168) Cash received on settlement of derivative financial instruments 49,303 253,872 Loans and equity contributions to unconsolidated affiliates (181,683) (20,771) Proceeds from the sale of Celebrity Galaxy 290,928 - Other, net (5,883) (7,744) —— —— Net cash used in investing activities (170,924) (1,087,811) ——– ———- Financing Activities Debt proceeds 75,813 1,098,105 Debt issuance costs (15,456) (12,006) Repayments of debt (327,648) (511,634) Dividends paid - (96,017) Proceeds from exercise of common stock options - 3,372 Other, net 721 495 — — Net cash (used in) provided by financing activities (266,570) 482,315 ——– ——- Effect of exchange rate changes on cash 1,516 439 Net (decrease) increase in cash and cash equivalents (93,120) 156,374 Cash and cash equivalents at beginning of period 402,878 230,784 ——- ——- Cash and cash equivalents at end of period $309,758 $387,158 ======== ======== Supplemental Disclosure Cash paid during the period for: Interest, net of amount capitalized $171,856 $172,448 ======== ========

ROYAL CARIBBEAN CRUISES LTD. NON-GAAP RECONCILING INFORMATION (unaudited) Gross Yields and Net Yields were calculated as follows (in thousands, except APCD and Yields): Quarter Ended Six Months Ended June 30, June 30, —————— —————— 2009 2008 2009 2008 —- —- —- —- Passenger ticket revenues $ 956,593 $1,140,077 $1,905,863 $ 2,177,980 Onboard and other revenues 392,422 443,697 768,754 834,879 ——- ——- ——- ——- Total revenues 1,349,015 1,583,774 2,674,617 3,012,859 ========= ========= ========= ========= Less Commissions, transportation and other 232,552 284,735 468,381 542,675 Onboard and other 112,523 117,315 195,757 195,835 ——- ——- ——- ——- Net revenues $1,003,940 $1,181,724 $2,010,479 $2,274,349 ========== ========== ========== ========== APCD 6,585,128 6,362,851 13,328,584 12,694,950 Gross Yields $ 204.86 $ 248.91 $ 200.67 $ 237.33 Net Yields $ 152.46 $ 185.72 $ 150.84 $ 179.15 Gross Cruise Costs and Net Cruise Costs were calculated as follows (in thousands, except APCD and costs per APCD): Quarter Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Total cruise operating expenses $965,435 $1,090,999 $1,917,771 $2,053,185 Marketing, selling and administrative expenses 190,593 196,548 379,750 401,489 ——- ——- ——- ——- Gross Cruise Costs 1,156,028 1,287,547 2,297,521 2,454,674 ========= ========= ========= ========= Less: Commissions, transportation and other 232,552 284,735 468,381 542,675 Onboard and other 112,523 117,315 195,757 195,835 ——- ——- ——- ——- Net Cruise Costs $810,953 $ 885,497 $1,633,383 $1,716,164 ======== ======== ========== ========== APCD 6,585,128 6,362,851 13,328,584 12,694,950 Gross Cruise Costs per APCD $ 175.55 $ 202.35 $ 172.38 $ 193.36 Net Cruise Costs per APCD $ 123.15 $ 139.17 $ 122.55 $ 135.18 Net Debt-to-Capital was calculated as follows (in thousands): As of June 30, December 31, ——– ———– 2009 2008 —- —- Long-term debt, net of current portion $6,045,388 $6,539,510 Current portion of long-term debt 723,283 471,893 ——- ——- Total debt 6,768,671 7,011,403 Less: Cash and cash equivalents 309,758 402,878 ——- ——- Net Debt $6,458,913 $6,608,525 ========== ========== Total shareholders’ equity $7,048,835 $6,803,012 Total debt 6,768,671 7,011,403 ——— ——— Total debt and shareholders’ equity 13,817,506 13,814,415 ========== ========== Debt-to-Capital 49.0% 50.8% Net Debt 6,458,913 6,608,525 ——— ——— Net Debt and shareholders’ equity $13,507,748 $13,411,537 =========== =========== Net Debt-to-Capital 47.8% 49.3%

Source: Royal Caribbean Cruises Ltd.

Ian Bailey of Royal Caribbean Cruises Ltd., +1-305-982-2625