Royal Caribbean Group reported a very strong second quarter, and the huge number of passengers cruising on the new Icon of the Seas is an indication of how well things are going.
During the company's Q2 earnings call on Thursday, Royal Caribbean International CEO Michael Bayley said the Icon is currently sailing with a whopping load factor of 132%.
In layman's terms, that means the Icon -- the largest ship in the world -- is departing Miami in the summer months with 7,400 passengers aboard.
Icon accommodates 5,610 guests at double occupancy (100% load factor), but the ship can carry a lot more passengers when Pullman beds and pullout sofas are used -- usually for kids.
Royal Caribbean touts Icon of the Seas as the ultimate family vacation, and it's clear that families are filling it up.
"We're just delighted with very high customer satisfaction," Bayley said.
Net income up 86%, dividend reinstated
The Icon's occupancy was just one indication of Royal Caribbean Group's Q2 performance.
The companywide load factor was 108% in Q2, signaling the brand has returned to pre-pandemic numbers. The company reported a 108.5% load factor in the second quarter of 2019.
Year-over-year revenue was up 17%, to $4.11 billion. Operating income climbed 42%, to $1.1 billion. And net income totaled $854 million, an 86% increase.
Royal Caribbean said it exceeded financial expectations due to higher prices on close-in bookings and the continued strength of onboard revenue. The group is now taking more bookings for 2025 than it is for 2024, which it was close to claiming during its Q1 earnings call in April.
The quarter was strong enough that executives said the company will reinstate a quarterly dividend, with 40 cents per share payable on Oct. 11 to shareholders at the close of business on Sept. 20. Royal Caribbean Group is the first cruise company to reinstate a dividend.