Royal Caribbean Charts Aggressive Expansion with $5 Billion Fleet Investment, CFO Says

This analysis was adapted from original reporting by CFO Dive.

MIAMI — Royal Caribbean Group is steering a massive capital investment program to capitalize on a powerful resurgence in cruise demand, with its chief financial officer emphasizing a disciplined approach to funding growth while rewarding shareholders.

The company announced long-term fleet expansion plans alongside its fourth-quarter earnings, including an order for two new Discovery Class ships from France’s Chantiers de l'Atlantique shipyard, with options for four more. Its subsidiary, Celebrity River Cruises, aims to double its fleet to 20 ships by 2031.

"Our foundation is investment. Providing our teams with the resources to deliver exceptional experiences is what drives both customer satisfaction and shareholder value," CFO Naftali Holtz told CFO Dive in an interview.

For the full year 2026, the cruise giant expects capital expenditures to reach approximately $5 billion, the bulk tied to its new ship order book. An additional $1.8 billion is earmarked for non-ship projects, including developing private destinations.

This aggressive expansion follows a remarkable financial recovery. The pandemic brought the industry to a halt, costing Royal Caribbean an estimated $13 billion in losses between 2020 and 2022. However, pent-up demand has fueled a strong rebound. The company reported $17.3 billion in revenue for 2025, a 64% increase, with net income nearly doubling to $4.3 billion.

"We've built a more resilient, more profitable, and larger company," Holtz stated, noting that the demographic of cruisers is getting younger, with millennial and Gen Z guests nearly doubling since 2019.

With robust operating cash flow—$6.5 billion in 2025—the company is navigating a dual mandate: funding growth while returning capital. Last year, $2 billion was returned to shareholders via dividends and buybacks.

Holtz, who joined Royal Caribbean in 2019 after a 12-year tenure at Goldman Sachs, said the focus is on smart capital allocation. "We have great growth opportunities, but at our scale, we're also working on how to supplement that growth with capital return," he explained.

Technology, including artificial intelligence, is a key part of the strategy to enhance profitability and personalization. Nearly half of all onboard revenue for 2025 was booked before passengers stepped on the ship. AI helps tailor offerings, avoiding mismatches like suggesting a romantic dinner to a family with young children.

Despite economic uncertainties, Holtz expects demand to remain strong into 2026 and beyond, with no visible impact from broader headwinds so far. The company ended 2025 with a strong liquidity position of $7.2 billion.

Industry Voices: Reactions to the Expansion Plan

Michael Thorne, Travel Industry Analyst at Horizon Insights: "Royal Caribbean's capex plan is a bold bet on the long-term structural growth of experiential travel. Their ability to fund this while maintaining shareholder returns speaks to a exceptionally strong operational turnaround. The focus on pre-cruise revenue booking via tech is a masterstroke in margin enhancement."

Sarah Chen, Portfolio Manager at Coastal Capital: "The scale of investment is staggering, but necessary to maintain market leadership. The key will be execution without compromising the debt paydown achieved post-pandemic. The projected EBITDA nearing $8 billion provides a substantial cushion, but investors will watch capacity utilization closely."

David R. Miller, Editor at 'The Fiscal Watchdog' blog: "This is sheer hubris. Pouring $5 billion into more floating resorts when global economic indicators are flashing amber? They're drunk on post-pandemic demand. This is the same cycle of overbuilding that plagues the industry every decade. Shareholder returns now are being funded by debt our grandchildren will pay for."

Eleanor Vance, Veteran Cruise Travel Agent: "From the deck, this is fantastic news. The new ships, especially for Celebrity Rivers, answer direct demand we see every day. The clientele is younger and wants innovation. If their AI can actually cut down the boarding day chaos they mention, they'll win even more loyal customers."