Royal Caribbean Financials!

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Royal Caribbean Reports Third Quarter 2003 Results
Monday October 27, 8:12 am ET


MIAMI Oct. 27, 2003
Royal Caribbean Cruises Ltd. (NYSE:RCL) announced today that net
income for the third quarter of 2003 was $191.9 million, or $0.97 per
share. This compares to $193.5 million, or $0.99 per share, for the
third quarter of 2002. Revenues for the third quarter of 2003
increased 8.6% to $1.1 billion from revenues of $1.0 billion in the
third quarter of 2002. The increase in revenues was primarily due to
an increase in capacity and shipboard revenues, partially offset by
lower cruise ticket prices and occupancy levels. Gross Yields for the
third quarter of 2003 decreased 0.8% from the third quarter of 2002.
Net Yields, which the company considers a better measure of revenue
performance, decreased 2.1% from the third quarter of 2002.

While bookings improved rapidly after the war with Iraq, the fourth
quarter has been somewhat softer than expected. The company currently
estimates that Net Yields for the fourth quarter of 2003 will decrease
1% to 3% from the prior year. For the full year 2003, the company
reaffirms its previous estimate of a 1% to 2% decline in Net Yields.
Earnings for 2003 are expected to be in the range of $1.42 to $1.46
per share. Looking forward, the booking period of 2004 is just getting
underway. Close-in bookings (i.e. those within 90 days of sailing)
remain just under 50% which continues to make forecasting yield
performance more difficult than in prior years. Nevertheless,
management is encouraged by preliminary indicators and expects that
the first quarter of 2004 will have positive Net Yield growth.

"While we have seen a significant post Iraq war recovery, the fourth
quarter has been somewhat an exception to the overall trend," said
Richard D. Fain, chairman and chief executive officer of Royal
Caribbean Cruises Ltd. "Nevertheless, our Net Yield performance
continues to reinforce the strength of our brands and serves as
encouragement in our ability to perform in 2004."

Included in the third quarter of 2003 is a reduction in operating
expenses of $5.8 million, or $0.03 per share, recorded in connection
with the resolution of a litigation settlement originally recorded as
a charge of $20 million, or $0.10 per share, in the third quarter of
2002. The third quarter of 2003 was also impacted by $8.7 million, or
$0.04 per share, resulting from the cancellation of a Mediterranean
cruise for a Celebrity cruise ship.

Gross Cruise Costs, on a per Available Passenger Cruise Day basis,
increased 1.2% on a quarter over quarter basis. For the quarter, Net
Cruise Costs were essentially flat, on a per Available Passenger
Cruise Day basis. This is primarily attributable to higher fuel costs
and costs associated with the cancellation of a Celebrity cruise,
offset by the effect of the litigation settlement on the respective
periods. As previously predicted, Net Cruise Costs for the full year
2003, on a per Available Passenger Cruise Day basis, are expected to
increase approximately 3% from the prior year.

The company has received $105 million in additional commitments under
the terms of its unsecured revolving credit facility. The additional
commitments have increased the availability under the facility to $655
million and do not alter any of the facility's existing terms.

During September 2003, Celebrity released its "Treated Famously"
marketing campaign. In the tradition of Celebrity's 2002 "A True
Departure" campaign, the "Treated Famously" television and print
campaign continues to break away from typical cruise advertisements by
showcasing the impact that a Celebrity vacation can have on making
their guests' experiences unforgettable. Based upon initial market
reaction, the campaign is off to a good start.

This month the company will add Mariner of the Seas to its fleet. The
new 142,000-ton Mariner of the Seas will be the fifth vessel in the
3,114-passenger Voyager-class series for Royal Caribbean International
and the largest vessel to sail from Port Canaveral. The Mariner of the
Seas and her sister ships are the world's largest and most innovative
cruise vessels featuring such amenities as the line's signature
rock-climbing wall, ice skating rink, an inline skating track,
full-size basketball court, one of the largest fitness and spa
complexes at sea, and the Royal Promenade -- a shopping, dining and
entertainment street running through the center of the ship.

The company has scheduled a conference call at 10 a.m. 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.

Terminology

Available Passenger Cruise Days

Available Passenger Cruise Days represent double occupancy per cabin
multiplied by the number of cruise days for the period.

Gross Yields

Gross Yields represent revenues per Available Passenger Cruise Day.

Net Yields

Net Yields represent revenues less costs of air transportation, travel
agent commissions and certain other direct costs (all of which are
included in operating expenses) per Available Passenger Cruise Day.
Such costs were $263.4 million and $232.3 million for the three months
ending September 30, 2003 and 2002, respectively.

Gross Cruise Costs

Gross Cruise Costs represent operating expenses and marketing, selling
and administrative expenses.

Net Cruise Costs

Net Cruise Costs represent running expenses (i.e. those expenses
directly associated with ship operations, which are defined as
operating expenses less costs deducted to arrive at Net Yields) and
marketing, selling and administrative expenses.

Royal Caribbean Cruises Ltd. is a global cruise vacation company that
operates Royal Caribbean International and Celebrity Cruises, with a
combined total of 26 ships in service and three under construction or
on firm order. The company also offers unique cruisetour vacations in
Alaska, Canada and Europe. 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 are 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. Such factors
include general economic and business conditions, vacation industry
competition, including cruise industry competition, changes in
vacation industry capacity (including cruise capacity), 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, incidents involving cruise ships at sea, reduced consumer
demand for cruises as a result of any number of reasons (including
armed conflict, terrorist attacks, geo-political and economic
uncertainties or the unavailability of air service), changes in
interest rates or oil prices, weather and other factors described in
further detail in Royal Caribbean's filings with the Securities and
Exchange Commission. The above examples may not be 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 presentation 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.

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

Third Quarter Ended Nine Months Ended
September 30, September 30,
----------------------- -------------------------
2003 2002 2003 2002
---------- ----------- ------------ ------------


Revenues $1,120,199 $1,031,660 $ 2,906,204 $ 2,653,417
---------- ----------- ------------ ------------

Expenses
Operating 651,355 601,640 1,784,390 1,603,143
Marketing,
selling and
administrative 129,016 102,885 372,457 312,232
Depreciation
and
amortization 90,667 85,538 268,051 253,513
---------- ----------- ------------ ------------
871,038 790,063 2,424,898 2,168,888
---------- ----------- ------------ ------------
Operating Income 249,161 241,597 481,306 484,529
---------- ----------- ------------ ------------

Other Income (Expense)
Interest
income 1,269 3,696 3,183 10,408
Interest expense,
net of
capitalized
interest (67,133) (67,755) (198,767) (203,031)
Other income
(expense) 8,570 15,956 14,991 21,101
----------- ----------- ------------ ------------
(57,294) (48,103) (180,593) (171,522)
----------- ----------- ------------ ------------

Net Income $ 191,867 $ 193,494 $ 300,713 $ 313,007
=========== =========== ============ ============

Earnings Per Sha
Basic $ 0.99 $ 1.01 $ 1.55 $ 1.63
=========== =========== ============ ============
Diluted $ 0.97 $ 0.99 $ 1.53 $ 1.60
=========== =========== ============ ============

Weighted Average
Shares Outstanding:
Basic 194,402 192,463 193,535 192,399
=========== =========== ============ ============
Diluted 198,663 195,341 196,489 195,755
=========== =========== ============ ============

-------------------------------------------------------------------

STATISTICS

Third Quarter Ended Nine Months Ended
September 30, September 30,
------------------------ ------------------------
2003 2002 2003 2002
----------- ----------- ----------- ------------
Occupancy
Percentage 107.7% 108.4% 103.8% 105.6%

Passenger
Cruise Days 5,327,500 4,898,576 14,880,616 13,516,875

Available
Passenger
Cruise Days 4,947,414 4,520,820 14,337,710 12,796,136

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

As of
-------------------------
September 30, December 31,
2003 2002
------------ ------------
(unaudited)
ASSETS
Current Assets
Cash and cash equivalents $380,040 $242,584
Trade and other receivables, net 98,592 79,535
Inventories 47,267 37,299
Prepaid expenses and other assets 152,388 88,325
------------ ------------
Total current assets 678,287 447,743

Property & Equipment - at cost less
accumulated depreciation and amortization 9,543,942 9,276,484
Goodwill, net 278,561 278,561
Other Assets 567,213 535,743
------------ ------------
$11,068,003 $10,538,531
============ ============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Current portion of long-term debt $324,219 $122,544
Accounts payable 177,605 171,153
Accrued expenses and other liabilities 380,012 308,281
Customer deposits 679,205 567,955
------------ ------------
Total current liabilities 1,561,041 1,169,933

Long-Term Debt 5,197,064 5,322,294
Other Long-Term Liabilities 24,280 11,610

Commitments and Contingencies

Shareholders' Equity
Common stock ($.01 par value; 500,000,000 shares
authorized; 195,179,245 and 192,982,513
shares issued) 1,952 1,930
Paid-in capital 2,087,152 2,053,649
Retained earnings 2,207,717 1,982,580
Accumulated other comprehensive (loss)
income (3,626) 3,693
Treasury stock (546,126 and 515,868 common
shares at cost) (7,577) (7,158)
------------ ------------
Total shareholders' equity 4,285,618 4,034,694
------------ ------------
$11,068,003 $10,538,531
============ ============

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

Nine Months Ended
September 30,
-------------------
2003 2002
--------- ---------

OPERATING ACTIVITIES
Net income $300,713 $313,007
Adjustments:
Depreciation and amortization 268,051 253,513
Accretion of original issue discount 36,390 34,882
Changes in operating assets and liabilities:
Increase in trade and other receivables, net (9,105) (10,162)
Increase in inventories (9,968) (1,356)
Decrease (increase) in prepaid expenses and
other assets 2,653 (18,396)
Increase in accounts payable 6,452 30,921
Decrease in accrued expenses and other
liabilities (10,937) (31,823)
Increase in customer deposits 111,250 132,861
Other, net (3,718) 12,973
--------- ---------
Net cash provided by operating activities 691,781 716,420
--------- ---------

INVESTING ACTIVITIES
Purchases of property and equipment (535,381) (152,125)
Other, net (37,563) (21,755)
--------- ---------
Net cash used in investing activities (572,944) (173,880)
--------- ---------

FINANCING ACTIVITIES
Repayments of long-term debt, net (194,583) (576,896)
Net proceeds from issuance of debt 244,910 -
Dividends (50,211) (75,041)
Other, net 18,503 24,027
--------- ---------
Net cash provided by (used in) financing activities 18,619 (627,910)
--------- ---------

Net Increase (Decrease) in Cash and Cash
Equivalents 137,456 (85,370)
Cash and Cash Equivalents at Beginning of Period 242,584 727,178
--------- ---------
Cash and Cash Equivalents at End of Period $380,040 $641,808
========= =========

Supplemental Disclosures
Cash paid during the year for:
Interest, net of amount capitalized $168,761 $187,595
========= =========
Noncash investing and financing activities:
Acquisition of vessel through debt $- $319,951
========= =========