Royal Caribbean Record Earnings!

Hi Everyone,

I received this press release from Royal Caribbean and thought it
would be of interest. If you have missed any of my news' postings,
they are available on my web site.

Best regards,
Ray
LIGHTHOUSE TRAVEL
800-719-9917 or 805-566-3905
http://www.lighthousetravel.com


Royal Caribbean Cruises Ltd. Reports Record First Quarter Earnings

MIAMI, April 21
Royal Caribbean Cruises Ltd. (NYSE: RCL; Oslo) reported today that net
income for the first quarter of 2005 was $135.3 million, or $0.63 per
share. This compares to $95.8 million, or $0.47 per share, for the
first quarter of 2004. Revenues for the first quarter of 2005
increased 10.0% to $1.2 billion from revenues of $1.1 billion in the
first quarter of 2004. The increase in revenues was attributable to an
improvement in cruise ticket prices, a 3.3% increase in capacity and
increases in occupancy and onboard revenues. Gross Yields and Net
Yields for the first quarter of 2005 increased 6.5% and 8.2% from the
first quarter of 2004, respectively. Occupancy reached a record level
for the first quarter, at 105.7%, up from 104.2% in the first quarter
of 2004.

The pace of bookings and consumer demand remains positive and on track
with the company's previous expectations. First quarter Net Yield
performance allows the company to narrow its full year Net Yield
guidance to an increase in the range of 6% to 7%. The company
currently expects Net Yields for the second quarter of 2005 will
increase approximately 6%.

"We are very pleased with our first quarter results," said Richard D.
Fain, chairman and chief executive officer of Royal Caribbean Cruises
Ltd. "All key elements of the business performed very well, but the
high cost of fuel is a major focus."

During the quarter, the company passed an important milestone. Net
debt to capital dropped to below 50%, demonstrating solid progress in
the company's program to strengthen its balance sheet.

For the first quarter of 2005, Gross Cruise Costs and Net Cruise Costs
per APCD increased 4.6% and 6.0%, respectively, compared to the same
quarter in 2004. Inflationary pressures, especially related to fuel
costs, are the primary driver of these cost increases. During the
first quarter of 2005, "at-the-pump" prices of fuel were approximately
30% higher than those experienced in the first quarter of 2004 and
represented approximately 6.1% of total revenues.

Also during the quarter, the company announced that one of its ships
experienced a breakdown in its propulsion unit which is estimated to
reduce 2005 earnings per share by approximately $0.03-$0.04, divided
roughly evenly between the first two quarters.

Because of excellent bookings during the beginning of the year, the
company decided to defer certain expenses, including its marketing
spend, to later in the year. Partially offsetting these changes, the
company incurred higher than expected payroll and benefit expenses.
Despite these expenses and costs incurred in connection with the
cancellation of a 10-night Hawaiian cruise, the increase in Net Cruise
Costs per APCD was in-line with the company's previous guidance.

Fuel costs continue to be the most important variable impacting Net
Cruise Costs and make forecasting very difficult. In the company's
last update, it estimated that at-the-pump fuel prices for the first
quarter would increase about 11% over the average level for 2004. The
company also estimated that if that 11% figure continued for the full
year it would cost an additional $23 million (net of hedges). Fuel
prices for the first quarter were 11% higher than the 2004 yearly
average. However, since then, at-the-pump fuel prices have continued
to rise despite the fact that crude oil prices have actually fallen
slightly. Currently, at-the-pump fuel prices are 20% higher than the
2004 yearly average. If prices for the remainder of 2005 remain at
today's level, that price increase would cost the company $26 million
in addition to the $23 million previously disclosed. Based on this
assumption, Net Cruise Costs per APCD for 2005 would increase
approximately 5% to 6% compared to 2004. The price increase in fuel
accounts for approximately 3 percentage points of this increase.

Based upon the above, management expects full year 2005 earnings per
share to be in the range of $2.65 to $2.85. On the same basis, second
quarter 2005 earnings per share are expected to be in the range of
$0.55 to $0.60.

In early April, the company announced its order with Finnish
shipbuilder Aker Finnyards for a third ship in its Freedom class.
Destined for the Royal Caribbean International fleet, the three
158,000-GRT ships will each carry approximately 3,600 passengers
double occupancy when completed. This is approximately 15 percent
larger than its Voyager class predecessors. The third Freedom class
ship is expected to enter service in early 2008.

The company has scheduled a conference call at 10 a.m. Eastern
Daylight Time today to discuss its earnings. This call can be listened
to, either live or on a delayed basis, on the company's investor
relations web site at http://www.rclinvestor.com . A slide
presentation will accompany the conference call, and is also available
for viewing at http://www.rclinvestor.com .

Terminology

Available Passenger Cruise Days ("APCD")

Available Passenger Cruise Days are the company's measurement of
capacity and represent double occupancy per cabin multiplied by the
number of cruise days for the period.

Gross Yields
Gross Yields represent total revenues per APCD.

Net Yields

Net Yields represent Gross Yields less commissions, transportation and
other expenses and onboard and other expenses per APCD. The company
utilizes Net Yields to manage its business on a day-to-day basis and
believes that it is the most relevant measure of its pricing
performance. The company has not provided a quantitative
reconciliation of projected Gross Yields to projected Net Yields due
to the significant uncertainty in projecting the costs deducted to
arrive at this measure. Accordingly, the company does not believe that
reconciling information for such projected figures would be
meaningful.

Gross Cruise Costs

Gross Cruise Costs represent the sum of total cruise operating
expenses plus marketing, selling and administrative expenses.

Net Cruise Costs

Net Cruise Costs represent Gross Cruise Costs excluding commissions,
transportation and other expenses and onboard and other expenses. In
measuring the company's ability to control costs in a manner that
positively impacts net income, the company believes changes in Net
Cruise Costs to be the most relevant indicator of its performance. The
company has not provided a quantitative reconciliation of projected
Gross Cruise Costs to projected Net Cruise Costs due to the
significant uncertainty in projecting the costs deducted to arrive at
this measure. Accordingly, the company does not believe that
reconciling information for such projected figures would be
meaningful.

Passenger Cruise Days

Passenger Cruise Days represent the number of passengers carried for
the period multiplied by the number of days of their respective
cruises.

Occupancy

Occupancy, in accordance with cruise vacation industry practice, is
calculated by dividing Passenger Cruise Days by APCD. A percentage in
excess of 100% indicates that three or more passengers occupied some
cabins.

Royal Caribbean Cruises Ltd. is a global cruise vacation company that
operates Royal Caribbean International and Celebrity Cruises, with a
combined total of 29 ships in service and three under construction.
The company also offers unique land-tour vacations in Alaska, Canada
and Europe through its cruise-tour division. Additional information
can be found on http://www.royalcaribbean.com ,
http://www.celebrity.com or http://www.rclinvestor.com .

Certain statements in this news release constitute forward-looking
statements under the Private Securities Litigation Reform Act of 1995.
Words such as "expect," "anticipate," "goal," "project," "plan,"
"believe," "seek" and similar expressions are intended to identify
these forward-looking statements. Forward-looking statements do not
guarantee future performance and may involve risks, uncertainties and
other factors which could cause our actual results, performance or
achievements to differ materially from the future results, performance
or achievements expressed or implied in those forward-looking
statements. Examples of these risks, uncertainties and other factors
include, but are not limited to: general economic and business
conditions, vacation industry competition (including cruise industry
competition), changes in vacation industry capacity (including over
capacity in the cruise vacation industry), the impact of tax laws and
regulations affecting our business or our principal shareholders, the
impact of changes in other laws and regulations affecting our
business, the impact of pending or threatened litigation, the delivery
of scheduled new ships, emergency ship repairs, negative incidents
involving cruise ships (including those involving the health and
safety of passengers), reduced consumer demand for cruises as a result
of any number of reasons (including geo-political and economic
uncertainties, the unavailability of air service, armed conflict,
terrorist attacks and the resulting concerns over safety and security
aspects of traveling), our ability to obtain financing on terms that
are favorable or consistent with our expectations, changes in our
stock price or principal stockholders, the impact of changes in
operating and financing costs (including changes in foreign currency
and interest rates and fuel, food, payroll, insurance and security
costs), weather and other factors described in further detail in Royal
Caribbean Cruises Ltd.'s filings with the Securities and Exchange
Commission. The above examples are not exhaustive and new risks emerge
from time to time. We undertake no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise. In addition, certain
financial measures in this news release constitute non-GAAP financial
measures as defined by Regulation G. A reconciliation of these items
can be found on our investor relations website at
http://www.rclinvestor.com .

Financial Tables Follow

ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share data)

First Quarter Ended
March 31,

------------------------------
2005 2004
--------------
--------------

Passenger ticket revenues $ 872,672 $
790,093
Onboard and other revenues 295,405
271,591
-----------
-----------
Total revenues 1,168,077
1,061,684
-----------
-----------
Cruise operating expenses
Commissions, transportation and
other 213,572
203,904
Onboard and other 60,954
57,883
Payroll and related 127,785
115,942
Food 67,568
65,836
Other operating 237,503
210,834
-----------
-----------
Total cruise operating expenses 707,382
654,399
Marketing, selling and
administrative expenses 161,530
150,238
Depreciation and amortization
expenses 99,762
96,579
-----------
-----------
Operating Income 199,403
160,468
-----------
-----------
Other income (expense)
Interest income 2,447
1,449
Interest expense, net of interest
capitalized (75,289)
(75,740)
Other income 8,782
9,669
-----------
-----------
(64,060)
(64,622)
Net Income $ 135,343 $
95,846
===========
===========

Earnings Per Sha
Basic $ 0.67 $
0.49
===========
===========
Diluted $ 0.63 $
0.47
===========
===========

Weighted-Average Shares Outstanding:
Basic 201,619
197,425
===========
===========
Diluted 236,209
216,000
===========
===========



STATISTICS

First Quarter Ended
March 31,

------------------------------
2005
2004
--------------
-------------

Occupancy 105.7%
104.2%

Passenger Cruise Days 5,772,957
5,512,049

APCD 5,462,012
5,289,536



ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)

As of

--------------------------------
March 31,
December 31,
2005
2004
--------------
--------------
(unaudited)
Assets
Current assets
Cash and cash equivalents $ 311,340 $
628,578
Trade and other receivables, net 82,239
84,899
Inventories 59,585
60,260
Prepaid expenses and other assets 109,024
86,869
-----------
-----------
Total current assets 562,188
860,606
Property and equipment - at cost
less accumulated depreciation
and amortization 10,172,558
10,193,443
Goodwill - less accumulated
amortization of $138,606 278,561
278,561
Other assets 586,804
631,474
-----------
-----------
$ 11,600,111 $
11,964,084
===========
===========

Liabilities and Shareholders' Equity
Current liabilities
Current portion of long-term debt $ 330,419 $
905,374
Accounts payable 185,507
162,973
Accrued expenses and other
liabilities 320,544
330,073
Customer deposits 1,004,507
875,082
-----------
-----------
Total current liabilities 1,840,977
2,273,502
Long-term debt 4,794,517
4,826,570
Other long-term liabilities 66,127
59,492

Commitments and contingencies

Shareholders' equity
Common stock ($.01 par value;
500,000,000 shares authorized;
201,841,185 and 201,253,140
shares issued) 2,018
2,012
Paid-in capital 2,222,604
2,206,157
Retained earnings 2,642,387
2,533,265
Accumulated other comprehensive
income 39,898
71,363
Treasury stock (606,642 and
596,556 common shares at cost) (8,417)
(8,277)
-----------
-----------
Total shareholders' equity 4,898,490
4,804,520
-----------
-----------
$ 11,600,111 $
11,964,084
===========
===========



ROYAL CARIBBEAN CRUISES LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)

First Quarter
Ended
March 31,

--------------------------------
2005
2004
--------------
-------------
Operating Activities
Net income $ 135,343 $
95,846
Adjustments:
Depreciation and amortization 99,762
96,579
Accretion of original issue
discount on debt 13,426
12,610
Changes in operating assets and
liabilities:
Increase in trade and other
receivables, net (716)
(702)
Decrease (increase) in
inventories 675
(3,181)
Increase in prepaid expenses and
other assets (18,846)
(35,174)
Increase in accounts payable 21,884
5,821
Decrease in accrued expenses and
other liabilities (3,411)
(9,566)
Increase in customer deposits 129,425
149,986
Other, net 4,165
1,599
-----------
-----------
Net cash provided by operating
activities 381,707
313,818
-----------
-----------

Investing Activities
Purchases of property and equipment (74,928)
(79,182)
Purchases of short-term investments (56,500)
(303,822)
Proceeds from sale of short-term
investments 56,500
129,950
Other, net (1,159)
12,326
-----------
-----------
Net cash used in investing
activities (76,087)
(240,728)
-----------
-----------

Financing Activities
Repayments of long-term debt (600,097)
(24,961)
Dividends (28,049)
(28,460)
Proceeds from exercise of common
stock options 5,152
42,158
Other, net 136
(12,788)
-----------
-----------
Net cash used in financing
activities (622,858)
(24,051)
-----------
-----------

Net (decrease) increase in cash and
cash equivalents (317,238)
49,039
Cash and cash equivalents at
beginning of period 628,578
330,086
-----------
-----------
Cash and cash equivalents at end of
period $ 311,340 $
379,125
===========
===========

Supplemental Disclosure
Cash paid during the period for:
Interest, net of amount
capitalized $ 59,401 $
62,255
===========
===========