Royal Caribbean Group Signs Agreement with Meyer Turku for the Next Ship in its Revolutionary Icon Class; Adds Options for Additional Icon Class Ships

Rhea-AI Summary

Royal Caribbean Group (NYSE: RCL) has signed an agreement with Meyer Turku for a fourth Icon Class ship, set to be delivered in 2027. The deal includes options for a fifth and sixth ship in the class. This expansion follows the successful launch of Icon of the Seas in January 2024, which has exceeded expectations in guest satisfaction and financial performance.

The announcement reinforces RCL's commitment to moderate capacity growth and innovation in vacation experiences. The Icon Class ships combine beach retreat, resort escape, and theme park adventure elements. With this order, Meyer Turku will have built 21 ships for Royal Caribbean Group over 28 years. The company's newbuild pipeline now includes seven ships on order and two shipyard options.

Positive

• Expansion of the successful Icon Class with a fourth ship ordered for 2027
• Options secured for fifth and sixth Icon Class ships
• Icon of the Seas exceeded expectations in guest satisfaction and financial performance
• Continued moderate capacity growth strategy
• Strengthened long-term partnership with Meyer Turku shipyard

Negative

• Significant capital investment required for new ship orders
• Potential financial risks associated with expanding fleet capacity

News Market Reaction

-0.63%

1 alert

-0.63% News Effect

On the day this news was published, RCL declined 0.63%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

MIAMI, Aug. 27, 2024 /PRNewswire/ -- Royal Caribbean Group (NYSE: RCL) announced today that it has signed an agreement with Finnish shipbuilder Meyer Turku to order a fourth Icon Class ship for delivery to Royal Caribbean International in 2027. The agreement also includes options to build a fifth and sixth Icon Class ship. 

"Building on the incredible momentum and market response to the launch of Icon of the Seas and the excitement for its sister ship, Star of the Seas, coming in 2025, we're thrilled to join with Meyer Turku once again to expand our roster of Icon Class ships and continue our future growth plans," said Jason Liberty, president and CEO, Royal Caribbean Group. "Since its debut, Icon has changed the game in vacation experiences and exceeded our expectations in both guest satisfaction and financial performance."

"This is great news for Finland. Royal Caribbean Group's long-term partnership will continue to have a positive impact on our employment and economy," said Petteri Orpo, Prime Minister of Finland. "Their commitment and investment in Finland speaks volumes about the strength of our maritime cluster and our world class shipyards." 

The first ship in the Icon Class launched in January 2024 as a first-of-its-kind vacation and introduced an all-encompassing lineup of experiences that combines the best of every vacation – from the beach retreat to the resort escape and the theme park adventure. The next ship in the lineup will continue to deliver revolutionary experiences as it joins Icon, Star of the Seas (launching in 2025) and the yet-to-be-named third Icon Class ship (launching in 2026). With this announcement, Royal Caribbean Group continues to drive its moderate capacity growth to help guests turn a vacation of a lifetime into a lifetime of vacations. 

"This order is an important milestone for the future of shipbuilding in the maritime network in Finland," added Tim Meyer, CEO of Meyer Turku. "With Icon of the Seas, our team, consisting of the shipyard and partners, have built an extraordinary ship in respect of naval architecture, energy efficiency and customer experience. This is yet another recognition of the professionalism of our personnel and of our leadership in the maritime industry's innovation and green transition. The options underline the strong outlook of our order book." 

Known for its history of delivering best-in-class ships, this also expands upon Royal Caribbean Group's longstanding relationship with Meyer Turku. With this order, Meyer Turku will have built 21 ships for Royal Caribbean Group over 28 years. 

The anticipation for Royal Caribbean Group's newbuild pipeline continues to grow, with seven new ships on order, and two shipyard options. This year alone, the company welcomed four new industry-leading ships, including Royal Caribbean International's Icon of the Seas and Utopia of the Seas, Silversea's Silver Ray and TUI Cruises' Mein Schiff 7. This order also comes on the heels of the company's announcement for a seventh Oasis Class ship, set to debut for Royal Caribbean International in 2028.

"Icon of the Seas is unlike anything the world has seen before, and we're just getting started," added Michael Bayley, president and CEO, Royal Caribbean International. "We are leading the vacation industry in developing new experiences for our guests to create lifelong memories, and we continue dreaming and evolving to deliver more ways to chill and thrill." 

This agreement is contingent upon customary conditions, including financing. 

For more information on Royal Caribbean Group and its brands, visit royalcaribbeangroup.com.

About Royal Caribbean Group
Royal Caribbean Group (NYSE: RCL) is a vacation industry leader with a global fleet of 68 ships across its five brands traveling to approximately 1,000 destinations. With a mission to deliver the best vacations responsibly, Royal Caribbean Group serves millions of guests each year through its portfolio of best-in-class brands, including Royal Caribbean International, Celebrity Cruises, and Silversea; and expanding portfolio of land-based vacation experiences through Perfect Day at CocoCay and Royal Beach Club collection. The company also owns 50% of a joint venture that operates TUI Cruises and Hapag-Lloyd Cruises. With a rich history of innovating, Royal Caribbean Group continually delivers exciting new products and guest experiences that help shape the future of leisure travel. Learn more at royalcaribbeangroup.com or rclinvestor.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/royal-caribbean-group-signs-agreement-with-meyer-turku-for-the-next-ship-in-its-revolutionary-icon-class-adds-options-for-additional-icon-class-ships-302231110.html

SOURCE Royal Caribbean Group

FAQ

When will Royal Caribbean's fourth Icon Class ship be delivered?

Royal Caribbean's fourth Icon Class ship is scheduled for delivery in 2027.

How many Icon Class ships does Royal Caribbean (RCL) have on order now?

Royal Caribbean (RCL) now has four Icon Class ships on order, with options for a fifth and sixth ship.

What was the market response to Icon of the Seas?

Icon of the Seas, launched in January 2024, exceeded expectations in both guest satisfaction and financial performance.

How many ships will Meyer Turku have built for Royal Caribbean Group?

With this order, Meyer Turku will have built 21 ships for Royal Caribbean Group over a 28-year period.

What is Royal Caribbean Group's (RCL) current newbuild pipeline?

Royal Caribbean Group (RCL) has seven new ships on order and two shipyard options in its current newbuild pipeline.