Royal Caribbean Cruises Ltd. (NYSE:RCL)

The financial data shows significant developments across the reported periods, particularly reflecting the dramatic impact on the company starting in 2020.

Revenue Trends

Passenger ticket revenues grew steadily from US$6.3 billion in 2017 to US$7.9 billion in 2019, before sharply declining to approximately US$1.5 billion in 2020 and further to US$941 million in 2021. Onboard and other revenues followed a similar pattern, increasing from US$2.5 billion in 2017 to over US$3 billion in 2019, then dropping significantly in 2020 and 2021. Total revenues peaked at around US$10.9 billion in 2019, before plummeting to roughly US$2.2 billion in 2020 and US$1.5 billion in 2021, reflecting a substantial downturn likely related to external disruptive events.

Cost and Expense Behavior

Cruise operating expenses increased steadily from approximately US$4.9 billion in 2017 to US$6 billion in 2019, before decreasing markedly in 2020 and 2021 to levels below US$2.8 billion, consistent with lower operational activity. Payroll and related expenses also decreased after 2019, likely due to reduced operations. Food and fuel expenses followed a similar declining trend post-2019. Other operating expenses were comparatively stable but showed a reduction coinciding with decreased revenues. Marketing, selling, and administrative expenses declined in 2020 but slightly increased again in 2021.

Profitability Analysis

Gross profit showed consistent growth, rising from US$3.9 billion in 2017 to nearly US$4.9 billion in 2019. However, it dramatically shifted to losses in 2020 and 2021, with losses exceeding US$1 billion in 2021. Operating income mirrored this trend — positive and growing through 2019, then turning sharply negative with losses reaching nearly US$4 billion in 2021. Net income followed the same pattern, with strong profitability pre-2020 and significant losses after, including net losses exceeding US$5 billion in 2020 and 2021.

Other Key Financial Items

Depreciation and amortization expenses gradually increased from US$951 million in 2017 to about US$1.3 billion in 2021, reflecting ongoing asset usage and possibly new investments. Impairment and credit losses were reported in 2020 and 2021, with a major charge of US$1.6 billion in 2020, indicating asset write-downs or credit risks associated with the downturn. Net interest expense increased substantially post-2019, exceeding US$1.2 billion in 2021, implying higher debt levels or financing costs during the crisis. Equity investment income turned negative in 2020 and 2021, and other income (expense) items also reflected increased losses in these years.

Income Tax and Minority Interest

Income tax expense generally remained low relative to earnings, with slight benefits in 2020 and 2021, likely due to the losses incurred. Net income attributable to noncontrolling interests was minimal and decreased over time.

Overall, the data illustrates robust financial growth until the end of 2019, followed by severe operational and financial challenges starting in 2020. The sharp declines in revenues, profitability, and the recognition of impairment losses underscore a period of crisis, with increased financing costs further impacting results. These patterns suggest a major disruption affecting the company’s business environment beginning in 2020 and continuing through 2021.