Royal Caribbean Sees Q2 Costs Rise Despite Fuel Savings

Royal Caribbean Group reported an overall increase in expenses for the second quarter of 2025, with fuel costs being the only category to decline—dropping by $3 million. The company attributes the reduction to a modernized fleet, more short-haul sailings in the Caribbean, optimized itineraries, and fleetwide implementation of advanced technologies.

In contrast, food-related expenditures rose by $21 million, influenced by greater sourcing within local markets, European import restrictions, and expanded ship capacity. The largest single expense category—commissions, transportation, and related costs—reached $606 million, compared to $572 million during the same period last year.

Additional increases were seen in onboard spending, which climbed to $262 million from $244 million, and payroll costs, which rose to $329 million from $313 million. Total cruise operating expenses approached $2.3 billion, marking a 6% year-over-year increase. Marketing, selling, and administrative expenses also grew, totaling $508 million for the quarter, up from $466 million in Q2 2024.