Simultaneously, the company has seen more close-in demand than expected for Caribbean sailings and historically high booking volume for 2027 so far, said CEO Jason Liberty.
The company raised its full year earnings per share expectations to between $17.73 and $17.87, and slightly lowered its revenue expectations for the year from about 10% to 9% growth.
Total revenue for the second quarter was up 6% year over year, reaching $4.8 billion. Net income was $1.1 billion, lower than the $1.2 billion earned in the second quarter of 2025.
Royal Caribbean anticipates yields will face headwinds in Q3 but will begin accelerating in Q4 when a greater portion of its fleet is in the Caribbean. In the third quarter, 28% of the company's capacity will be positioned in Europe.
"Europe demand is strong," said CFO Naftali Holtz. "We did, however, experience a modest and near-term impact on 2026 bookings since the last earnings call, primarily due to the prolonged geopolitical activity."
Onboard spending has been higher than in previous periods, Liberty said, highlighting beverages and shore excursions as examples.
The war has also had "little to no impact on guests who are thinking six months down the road," according to the CEO, who added that the impact is more so on travel three to six months out.
"As long as we're delivering on what our guests expect us to be doing, they're willing to trust their vacation with us, which you see in the bookings on a volume and on a rate basis," he said.
Perfect Day Mexico update
Mexican authorities blocked Perfect Day Mexico -- Royal Caribbean's planned private destination in Costa Maya, Mexico -- from continuation in May following pushback from environmental advocates.
But Liberty said Royal Caribbean has continued "to maintain a constructive dialog with community leaders and public officials as we work to develop a tourism destination that will create long-term opportunities for the region, for Mexico and for our guests."
Perfect Day Mexico had been scheduled for a late 2027 opening before the project was interrupted.
"The government is continuing to engage with community stakeholders to better understand their perspectives, a process that will take some time and is expected to affect our previously planned timeline," said Liberty.
