Royal Caribbean Booming Earnings & Guidance!

Hi Everyone,

I received this press release from Royal Caribbean and thought it
would be of interest. I suggest those of you that are thinking of
booking a cruise to do it soon. We are seeing many sold out sailings.
Cabins that are available are often times going up in price. 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 Reports Record Second Quarter Earnings and Increases
Guidance for the Year

MIAMI, July 28
Royal Caribbean Cruises Ltd. (NYSE: RCL; Oslo) announced today that
net income for the second quarter of 2004 was $122.2 million, or $0.59
per share. This compares to $55.7 million, or $0.28 per share, for the
second quarter of 2003. Revenues for the second quarter of 2004
increased 26.2% to $1.1 billion from revenues of $905.8 million in the
second quarter of 2003. The increase in revenues was primarily due to
a 12.4% increase in capacity coupled with an increase in cruise ticket
prices, occupancy and onboard revenues. Gross Yields for the second
quarter of 2004 increased 12.3% from the second quarter of 2003. Net
Yields, which the company considers a better measure of revenue
performance, increased 12.6% from the second quarter of 2003.

"These are exciting times at Royal Caribbean," said Richard D. Fain,
chairman and chief executive officer of Royal Caribbean Cruises Ltd.
"The marketplace is demonstrating characteristics that we haven't seen
since prior to 2001."

The booking environment continues to be strong as evidenced by
widespread improvements in pricing and occupancy. The company has
continued to focus on its "strategic pricing" programs as a result of
which the booking curve continues to be longer than in 2003. In
addition, the company has been able to fill on a more profitable basis
remaining berths as sailings approach. This has resulted in higher
occupancy and higher yields. Assuming there are no external shocks,
the company currently forecasts that Net Yields for the third and
fourth quarters of 2004 will increase in the range of 10% to 11% and
1% to 3%, respectively, compared to the same periods last year. On
this basis, the company expects Net Yields for the full year 2004 will
increase in the range of 7% to 9% from the prior year.

The company first remarked on the improvement in the yield environment
last spring, but the fact that this improvement has continued is very
gratifying. The company attributes part of the yield improvements to
its success in anticipating and managing market demand via its revenue
management.

Gross Cruise Costs and Net Cruise Costs, on a per Available Passenger
Cruise Day basis, for the second quarter of 2004 increased 8.1% and
6.6%, respectively, compared to the same quarter in 2003. Consistent
with industry and market trends, year-over-year cost comparisons were
negatively impacted by increases in fuel prices. Year-over-year
comparisons were also affected by an increase in marketing, selling
and administrative expenses, as well as crew and port expenses.

For the second half of 2004, the company estimates that Net Cruise
Costs, on a per Available Passenger Cruise Day basis, will be flat to
up 2% as compared to the same period from the prior year. The company
estimates that Net Cruise Costs, on a per Available Passenger Cruise
Day basis, for the third quarter of 2004 will increase in the range of
4% to 5% and for the fourth quarter of 2004 will be flat to down 2%
compared to the same periods in 2003.

Based upon these expectations, management anticipates 2004 earnings
per share to be in the range of $2.25 to $2.40.

The 2005 booking season has just begun and is off to a good start.
While the company does not have enough visibility to provide specific
yield guidance, demand is stronger than at the same time last year and
early indications, assuming there are no external shocks, point to a
positive yield environment.

In a separate release, the company today announced that it was
lengthening and refurbishing Enchantment of the Seas. The addition of
a 73-foot midsection and refurbishment will increase the vessel's
overall length to 990 feet and add 151 staterooms. The additional
space and extensive renovations will also accommodate new public areas
onboard Enchantment of the Seas, including a new specialty restaurant,
Royal Caribbean International's hallmark Boleros Latin lounge and
Latte'tudes coffee shop and ice cream parlor. In addition, existing
spaces will be extensively reconditioned. The expansion of Enchantment
of the Seas will add substantial revenue without adding commensurate
costs, while significantly improving the overall passenger experience.
The Enchantment of the Seas' transformation comes in the wake of
extensive enhancements to Empress of the Seas and Monarch of the Seas.
The line also has announced plans to revitalize Sovereign of the Seas
this fall.

"Projects like these give us a two-fold benefit -- upgrading our fleet
while producing a good ROI on the capital expenditures," said Fain.

During the second quarter, the company officially opened Cape Liberty
Cruise Port in Bayonne, N.J. Cape Liberty Cruise Port is located at
the northeast corner of The Peninsula at Bayonne Harbor, a 430-acre,
man-made peninsula that extends into New York Harbor. The new cruise
port offers passengers outstanding views of the harbor, the Verrazano
Narrows Bridge, the Statue of Liberty and lower Manhattan. Royal
Caribbean International has two ships at the new port in 2004, from
May through October. Voyager of the Seas offers an alternating
schedule of five-night Canada and nine-night Caribbean cruises.
Empress of the Seas offers alternating six-night and eight-night
Bermuda itineraries.

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 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 total revenues per Available Passenger
Cruise Day.

Net Yields
Net Yields represent Gross Yields excluding commissions,
transportation and other expenses and onboard and other expenses per
Available Passenger Cruise Day. We utilize Net Yields for revenue
management purposes and believe that it is the most relevant measure
of our pricing performance. We have 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. We utilize Net Yields to manage our business
on a day-to-day basis and believe it is a more relevant measure of our
performance. As such, we do not believe that reconciling information
is meaningful.

Gross Cruise Costs

Gross Cruise Costs represent total operating expenses and 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 our ability to control costs in a manner that positively
impacts net income, we believe changes in Net Cruise Costs to be the
most relevant indicator of our performance. We have 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. We utilize
Net Cruise Costs to manage our business on a day- to-day basis and
believe it is a more relevant measure of our performance. As such, we
do not believe that reconciling information is meaningful.

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 one under construction. 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, 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 our stock price,
interest rates or oil prices, 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)


Second Quarter Ended Six Months Ended
June 30, June 30,
---------------------
----------------------
2004 2003 2004 2003
---------- --------- ----------
----------

Passenger ticket
revenues $ 844,554 $663,817 $1,634,647
$1,316,947
Onboard and other
revenues 298,445 242,024 570,036
469,058
---------- --------- ----------
----------
Total revenues 1,142,999 905,841 2,204,683
1,786,005
---------- --------- ----------
----------
Operating expenses
Commissions,
transportation and
other 206,552 164,718 410,456
324,349
Onboard and other 77,294 62,191 135,177
112,733
Payroll and related 123,987 103,644 239,929
205,025
Food 65,755 57,534 131,591
115,257
Other operating 233,843 192,379 444,677
375,671
---------- --------- ----------
----------
Total operating
expenses 707,431 580,466 1,361,830
1,133,035

Marketing, selling and
administrative
expenses 143,321 119,457 293,559
243,441
Depreciation and
amortization expenses 97,661 88,715 194,240
177,384
---------- --------- ----------
----------
Operating income 194,586 117,203 355,054
232,145
---------- --------- ----------
----------
Other income (expense)
Interest income 1,333 809 2,782
1,914
Interest expense,
net of capitalized
interest (77,146) (66,750) (152,886)
(131,634)
Other income
(expense) 3,386 4,410 13,055
6,421
---------- --------- ----------
----------
(72,427) (61,531) (137,049)
(123,299)
---------- --------- ----------
----------
Net income $ 122,159 $ 55,672 $ 218,005 $
108,846
========== ========== ==========
==========

EARNINGS PER SHA
Basic $ 0.61 $ 0.29 $ 1.10 $
0.56
========== ========== ==========
==========
Diluted $ 0.59 $ 0.28 $ 1.05 $
0.56
========== ========== ==========
==========

WEIGHTED-AVERAGE
SHARES OUTSTANDING:
Basic 198,786 193,158 198,106
193,093
========== ========== ==========
==========
Diluted 216,730 195,882 216,335
195,394
========== ========== ==========
==========



STATISTICS

Second Quarter Ended Six Months
Ended
June 30, June 30,
---------------------
----------------------
2004 2003 2004
2003
---------- --------- ----------
----------

Occupancy as a
percentage of total
capacity 106.2% 101.8% 105.2%
101.7%

Passenger Cruise Days 5,639,115 4,809,952 11,151,164
9,553,116

Available Passenger
Cruise Days 5,312,326 4,726,704 10,601,862
9,390,296



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

As of

---------------------------
June 30,
December 31,
2004
2003
-----------
------------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 706,337 $
330,086
Trade and other receivables, net 94,957
89,489
Inventories 64,965
53,277
Prepaid expenses and other assets 94,865
101,698
------------
------------
Total current assets 961,124
574,550
Property and equipment - at cost
less accumulated depreciation
and amortization 10,238,150
9,943,495
Goodwill - less accumulated
amortization of $138,606 278,561
278,561
Other assets 535,790
526,136
------------
------------
$12,013,625
$11,322,742
============
============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt $ 1,080,736 $
315,232
Accounts payable 195,515
187,756
Accrued expenses and other
liabilities 284,025
271,944
Customer deposits 1,037,036
729,595
------------
------------
Total current liabilities 2,597,312
1,504,527

Long-term debt 4,896,425
5,520,572
Other long-term liabilities 31,867
34,746

Commitments and contingencies

Shareholders' equity
Common stock ($.01 par value;
500,000,000 shares authorized;
198,990,778 and 196,106,658 shares
issued) 1,990
1,961
Paid-in capital 2,159,053
2,100,612
Retained earnings 2,328,608
2,162,195
Accumulated other comprehensive
income 6,367
5,846
Treasury stock (576,384 and 556,212
common shares at cost) (7,997)
(7,717)
-----------
------------
Total shareholders' equity 4,488,021
4,262,897
-----------
------------
$12,013,625
$11,322,742
============
============


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

Six Months
Ended
June 30,

--------------------------
2004
2003
---------
---------
OPERATING ACTIVITIES
Net income $218,005
$108,846
Adjustments:
Depreciation and amortization 194,240
177,384
Accretion of original issue
discount on debt 25,401
24,139
Changes in operating assets and
liabilities:
Increase in trade and other
receivables, net (5,686)
(17,406)
Increase in inventories (11,518)
(10,976)
Increase in prepaid expenses and
other assets (43,192)
(18,985)
Increase (decrease) in accounts
payable 6,555
(3,758)
Increase (decrease) in accrued
expenses and other liabilities 19,112
(23,207)
Increase in customer deposits 307,227
162,388
Other, net 244
(7,558)
---------
----------
Net cash provided by operating
activities 710,388
390,867
---------
----------

INVESTING ACTIVITIES
Purchases of property and equipment (476,002)
(98,108)
Other, net (3,951)
(22,688)
---------
----------
Net cash used in investing activities (479,953)
(120,796)
---------
----------

FINANCING ACTIVITIES
Repayments of long-term debt, net (93,724)
(169,672)
Net proceeds from issuance of debt 225,000
244,910
Dividends (54,321)
(50,211)
Proceeds from exercise of stock
options 55,329
4,230
Other, net 13,532
(12,929)
---------
----------
Net cash provided by financing
activities 145,816
16,328
---------
----------
Net increase in cash and cash
equivalents 376,251
286,399
Cash and cash equivalents at
beginning of period 330,086
242,584
---------
----------
Cash and cash equivalents at end of
period $706,337
$528,983
=========
==========

Supplemental Disclosure
Cash paid during the year for:
Interest, net of amount capitalized $131,623
$111,887
=========

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