Royal Caribbean Reports Third Quarter Results

MIAMI -

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

Key Highlights

- Third quarter 2009 net income was US$230.4 million, or US$1.07 per share, compared to net income of US$411.9 million, or US$1.92 per share in 2008. The results were better than the company’s most recent guidance of US$0.95 to US$1.00 per share, driven primarily by the strength of close-in bookings. - Net Yields for the third quarter decreased 16.5% versus 2008, somewhat better than the company’s previous guidance of down approximately 18%. - Net Cruise Costs per APCD (”NCC”) for the third quarter decreased 10.0% versus 2008. NCC, excluding bunker for the third quarter declined 3.8% versus 2008. - The company projects net yields to decline 7% to 8% in the fourth quarter and approximately 14% for the full year. - Earnings per share (”EPS”) estimates for the full year are expected to be approximately US$0.70 and are expected to be a slight loss in the fourth quarter. - The company took delivery of the widely anticipated Oasis of the Seas on October 28th.

“Like many other travel companies, we saw more strength than we expected during our peak season but have been experiencing more pricing pressure on some of our traditionally softer fall season sailings,” said Richard D. Fain, chairman and chief executive officer. Fain continued, “Overall though, the business environment is largely unchanged and stable. We expect the yield deficit to continue to improve in the fourth quarter and we remain optimistic that 2010 will bring year-over-year yield improvement.”

Third Quarter 2009 Results

Royal Caribbean Cruises Ltd. today announced net income for the third quarter 2009 of US$230.4 million, or US$1.07 per share, compared to net income of US$411.9 million, or US$1.92 per share, in 2008.

Revenues were US$1.8 billion, versus US$2.1 billion in the third quarter of 2008. Net Yields decreased 16.5% from the prior year or 14.5% after adjusting for year over year changes in currency. Net yields improved approximately one and a half percentage points from the company’s previous guidance, mainly as a result of the strength of close-in bookings. As was announced during the second quarter, the H1N1 virus had a negative impact on yields of approximately two percentage points during the third quarter.

NCC decreased 10.0% from the prior year or 8.8% after adjusting for changes in currency. NCC, excluding fuel, declined 3.8% from the prior year or 2.2% after adjusting for changes in currency.

Fuel costs were in-line with the company’s previous calculations. Third quarter pricing averaged US$460 per metric ton and consumption was 318.2 thousand metric tons.

Revenue Environment

The company reported that booking volume since mid-September was up about 40% compared to same period last year, with favorable comparison for cruises departing both in the fourth quarter and next year. “While the pricing environment is still not what we’d like it to be, we’re pleased to see solid growth in our order book and a rapidly diminishing gap in year-over-year booked volume comparisons,” said Brian J. Rice, executive vice president and chief financial officer.

The company expects fourth quarter Net Yields to decline approximately 7% to 8%, slightly worse than its previous forecast of down mid-single digits. “During the fourth quarter, we historically source a disproportionate number of our guests from Florida,” said Rice. “As a consequence of the weaker economy in the state, we do not anticipate the same strength of close-in bookings in the fourth quarter as we saw in the third quarter.”

The company noted that its new ships, Royal Caribbean’s Oasis-class and Celebrity’s Solstice-class vessels, continue to command significant premiums and volumes. Oasis of the Seas will enter service on December 1, 2009; Celebrity Solstice and Celebrity Equinox are already in service, with Celebrity Eclipse debuting in April of 2010.

For the full year the company maintained its projection for Net Yields to decline approximately 14%, or 12% to 13% after adjusting for changes in currency.

The company affirmed its earlier outlook for year-over-year improvements in net revenue yields in the first quarter and for the full year of 2010.

Expense Guidance

NCC are forecasted to decrease approximately 10% for the fourth quarter and the full year. After adjusting for changes in currency, NCC are forecasted to decline approximately 12% in the fourth quarter and 8% to 9% for the full year.

Excluding fuel, NCC are expected to decline 7% to 8% for the fourth quarter and approximately 6% to 7% for the full year.

While it is early in the annual planning process, the company did comment that it anticipates flat NCC, excluding fuel, for full year 2010. Efficiencies on the new hardware, sustainable cost reductions completed in 2008 and 2009 and having attained initial critical mass in its international operations are all factors that will support this goal.

Fuel Expense

The company does not forecast fuel price changes 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$158 million and US$596 million of fuel expense in its fourth quarter and full year 2009 guidance, respectively.

The company’s fuel consumption is currently 40% hedged for the fourth quarter. In keeping with its previously disclosed hedging strategy, forecasted consumption is now 50% hedged in 2010, 50% hedged in 2011 and 10% hedged in 2012.

(All amounts in US dollars unless otherwise noted)

Fourth Quarter 2009 ——————- Fuel Consumption 323,000 mt Fuel Expenses $158 Million Percent Hedged (forward consumption) 40% Impact of 10% change in fuel prices $9 Million

Forward Guidance Summary

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

Fourth Quarter 2009 Full Year 2009 ——————- ————– EPS Approx. ($0.05) Approx. $0.70 Capacity 7.5% 5.1% Net Yields (7%) - (8%) Approx. (14%) Net Cruise Costs per APCD Approx. (10%) Approx. (10%) Net Cruise Costs per APCD, excluding Fuel (7%) - (8%) (6%) - (7%) Depreciation and Amortization Approx. $150 Million $565 to $570 Million Interest Expense Approx. $80 Million Approx. $305 Million

Liquidity and Financing Arrangements

As of September 30, 2009, liquidity was US$1.1 billion, including cash and the undrawn portion of the company’s unsecured 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 US$2.1 billion, US$2.2 billion, US$1.0 billion, and US$1.0 billion, respectively.

Capacity increases for the same four years are 5.1%, 11.6%, 8.8% and 2.7%, respectively.

The company took delivery of the Royal Caribbean International’s Oasis of the Seas on October 28th. The vessel was funded with a 12-year amortizing unsecured facility that matures in 2021. Oasis of the Seas’ launch continues to be one of the most widely anticipated and reported vessel deliveries of all time and the company expects an acceleration of media coverage and buzz when the vessel arrives in Florida on November 11th.

Conference Call Scheduled

The company has scheduled a conference call at 10 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 39 ships in service and four 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 release constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. Words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “goal”, “intend”, “may”, “plan”, “project”, “seek”, “should”, “will”, and similar expressions are intended to 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 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 repayments 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 and 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 compliance with or changes in tax, environmental, health, safety and other laws and regulations affecting our business or our principal shareholders, 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 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 Nine Months Ended September 30, September 30, ————— ————— 2009 2008 2009 2008 —- —- —- —- Passenger ticket Revenues $1,270,610 $1,498,221 $3,176,473 $3,676,201 Onboard and other revenues 492,932 565,168 1,261,686 1,400,047 ——- ——- ——— ——— Total revenues 1,763,542 2,063,389 4,438,159 5,076,248 ——— ——— ——— ——— Cruise operating expenses: Commissions, transportation and other 303,969 375,638 772,350 918,313 Onboard and other 152,579 168,145 348,336 363,980 Payroll and related 171,164 170,269 505,376 487,851 Food 88,394 90,432 254,710 255,530 Fuel 146,254 207,274 437,617 539,807 Other operating 253,726 263,903 715,468 763,365 ——- ——- ——- ——- Total cruise Operating expenses 1,116,086 1,275,661 3,033,857 3,328,846 Marketing, selling and administrative expenses 196,594 191,115 576,344 592,604 Depreciation and amortization expenses 144,021 134,706 421,802 386,373 ——- ——- ——- ——- Operating Income 306,841 461,907 406,156 768,425 ——- ——- ——- ——- Other income (expense): Interest income 2,225 5,620 5,114 11,143 Interest expense, net of interest capitalized (73,912) (80,560) (221,701) (239,594) Other (expense) income (4,762) 24,920 (30,501) 32,269 —— —— ——- —— (76,449) (50,020) (247,088) (196,182) ——- ——- ——– ——– Net Income $ 230,392 $ 411,887 $ 159,068 $ 572,243 ======== ======== ======== ======== Earnings Per Share: Basic $ 1.08 $ 1.93 $ 0.74 $ 2.68 ===== ===== ===== ===== Diluted $ 1.07 $ 1.92 $ 0.74 $ 2.67 ===== ===== ===== ===== Weighted-Average Shares Outstanding: Basic 213,839 213,524 213,769 213,445 ======= ======= ======= ======= Diluted 215,669 214,172 214,773 214,334 ======= ======= ======= ======= STATISTICS Quarter Ended Nine Months Ended September 30, September 30, ————- ————- 2009 2008 2009 2008 —- —- —- —- Passengers Carried 1,046,943 1,072,358 2,958,219 3,093,748 Passenger Cruise Days 7,545,314 7,487,096 21,105,895 20,719,165 APCD 7,157,608 6,945,217 20,486,192 19,640,167 Occupancy 105.4% 107.8% 103.0% 105.5%

ROYAL CARIBBEAN CRUISES LTD. CONSOLIDATED BALANCE SHEETS (in thousands, except share data) As of —– September 30, December 31, 2009 2008 —- —- (unaudited) Assets Current assets Cash and cash equivalents $ 285,863 $ 402,878 Trade and other receivables, net 334,666 271,287 Inventories 109,663 96,077 Prepaid expenses and other assets 185,360 125,160 Derivative financial instruments 105,084 81,935 ——- —— Total current assets 1,020,636 977,337 Property and equipment, net 14,203,910 13,878,998 Goodwill 803,189 779,246 Other assets 1,158,560 827,729 ——— ——- $17,186,295 $16,463,310 =========== =========== Liabilities and Shareholders’ Equity Current liabilities Current portion of long-term debt $ 667,608 $ 471,893 Accounts payable 270,472 245,225 Accrued interest 145,586 128,879 Accrued expenses and other liabilities 513,345 687,369 Customer deposits 1,002,488 968,520 Hedged firm commitments 163,318 172,339 ——- ——- Total current liabilities 2,762,817 2,674,225 Long-term debt 6,628,442 6,539,510 Other long-term liabilities 351,290 446,563 Commitments and contingencies Shareholders’ equity Preferred stock (US$0.01 par value; 20,000,000 shares authorized; none outstanding) - - Common stock (US$0.01 par value; 500,000,000 shares authorized; 224,213,977 and 223,899,076 shares issued, September 30, 2009 2,242 2,239 and December 31, 2008, respectively) Paid-in capital 2,969,663 2,952,540 Retained earnings 4,751,597 4,592,529 Accumulated other comprehensive income (loss) 133,947 (319,936) Treasury stock (10,308,683 and 11,076,701 common shares at cost, September 30, 2009 and December 31, 2008, respectively) (413,703) (424,360) ——– ——– Total shareholders’ equity 7,443,746 6,803,012 ——— ——— $17,186,295 $16,463,310 =========== =========== ROYAL CARIBBEAN CRUISES LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands) Nine Months Ended September 30, ————- 2009 2008 —- —- Operating Activities Net income $159,068 $572,243 Adjustments: Depreciation and amortization 421,802 386,373 Changes in operating assets and liabilities: Increase in trade and other receivables, net (18,029) (16,835) Increase in inventories (12,539) (18,528) Increase in prepaid expenses and other assets (9,433) (9,165) Increase (decrease) in accounts payable 21,915 (1,652) Increase in accrued interest 16,706 5,682 Increase in accrued expenses and other liabilities 31,623 61,648 Increase in customer deposits 13,840 73,404 Other, net 38,826 (8,406) —— —— Net cash provided by operating activities 663,779 1,044,764 ——- ——— Investing Activities Purchases of property and equipment (1,153,090) (1,413,347) Cash received on settlement of derivative financial instruments 105,964 256,338 Loans and equity contributions to unconsolidated affiliates (181,683) (41,429) Proceeds from the sale of Celebrity Galaxy 290,928 - Other, net (100) (11,317) —- ——- Net cash used in investing activities (937,981) (1,209,755) ——– ———- Financing Activities Debt proceeds 992,463 1,143,682 Debt issuance costs (35,819) (13,400) Repayments of debt (804,356) (762,826) Dividends paid - (128,045) Proceeds from exercise of common stock options 290 3,656 Other, net 3,827 (4,318) —– —— Net cash provided by financing activities 156,405 238,749 ——- ——- Effect of exchange rate changes on cash 782 (2,579) Net (decrease) increase in cash and cash equivalents (117,015) 71,179 Cash and cash equivalents at beginning of period 402,878 230,784 ——- ——- Cash and cash equivalents at end of period $285,863 $301,963 ======== ======== Supplemental Disclosure Cash paid during the period for: Interest, net of amount capitalized $205,873 $226,172 ======== ========

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 Nine Months Ended September 30, September 30, ————- —————– 2009 2008 2009 2008 —- —- —- —- Passenger ticket revenues $1,270,610 $1,498,221 $ 3,176,473 $ 3,676,201 Onboard and other revenues 492,932 565,168 1,261,686 1,400,047 ——- ——- ——— ——— Total revenues 1,763,542 2,063,389 4,438,159 5,076,248 ========= ========= ========= ========= Less: Commissions, and other 303,969 375,638 772,350 918,313 Onboard and other 152,579 168,145 348,336 363,980 ——- ——- ——- ——- Net revenues $1,306,994 $1,519,606 $ 3,317,473 $ 3,793,955 ========== ========== ========== ========== APCD 7,157,608 6,945,217 20,486,192 19,640,167 Gross Yields $ 246.39 $ 297.09 $ 216.64 $ 258.46 Net Yields $ 182.60 $ 218.80 $ 161.94 $ 193.17 Gross Cruise Costs and Net Cruise Costs were calculated as follows (in thousands, except APCD and costs per APCD): Quarter Ended Nine Months Ended September 30, September 30, ————- —————– 2009 2008 2009 2008 —- —- —- —- Total cruise operating expenses $1,116,086 $ 1,275,661 $ 3,033,857 $ 3,328,846 Marketing, selling and administrative expenses 196,594 191,115 576,344 592,604 ——- ——- ——- ——- Gross Cruise Costs 1,312,680 1,466,776 3,610,201 3,921,450 ========= ========= ========= ========= Less: Commissions, transportation and other 303,969 375,638 772,350 918,313 Onboard and other 152,579 168,145 348,336 363,980 ——- ——- ——- ——- Net Cruise Costs $ 856,132 $ 922,993 $ 2,489,515 $ 2,639,157 ======== ======== ========== ========== APCD 7,157,608 6,945,217 20,486,192 19,640,167 Gross Cruise Costs per APCD $ 183.40 $ 211.19 $ 176.23 $ 199.66 Net Cruise Costs per APCD $ 119.61 $ 132.90 $ 121.52 $ 134.38 Net Debt-to-Capital was calculated as follows (in thousands): As of September 30, December 31, ————- ———— 2009 2008 —- —- Long-term debt, net of current portion $ 6,628,442 $ 6,539,510 Current portion of long-term debt 667,608 471,893 ——- ——- Total debt 7,296,050 7,011,403 Less: Cash and cash equivalents 285,863 402,878 ——- ——- Net Debt $ 7,010,187 $ 6,608,525 ========== ========== Total shareholders’ equity $7,443,746 $6,803,012 Total debt 7,296,050 7,011,403 ——— ——— Total debt and shareholders’ equity 14,739,796 13,814,415 ========== ========== Debt-to-Capital 49.5% 50.8% Net Debt 7,010,187 6,608,525 ——— ——— Net Debt and shareholders’ equity $14,453,933 $13,411,537 =========== =========== Net Debt-to- Capital 48.5% 49.3%

Source: Royal Caribbean Cruises Ltd.

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