(Reuters) -Royal Caribbean Group raised its annual revenue forecast after upbeat outcomes on Thursday, betting on larger ticket costs and pent-up leisure journey demand, sending its shares up almost 8% in premarket buying and selling.

The Miami, Florida-based firm additionally projected current-quarter earnings nicely above Wall Avenue estimates and reported a smaller-than-expected quarterly loss, thanks additionally to robust on-board spending from passengers.

Whereas cruise liners have raised ticket costs to defend earnings from the affect of rising gas prices, that has not deterred well-to-do People from splurging on cruise holidays together with on-board facilities akin to spas and gaming after the easing of pandemic restrictions.

That has pushed a pointy rebound in reserving volumes and occupancy charges at cruise corporations, propelling Royal Caribbean (NYSE:) to a record-breaking “wave season”, an vital interval between January and March when operators supply particular offers and reductions for the yr.

“We knew that demand for our enterprise was robust and strengthening, however we’ve got been pleasantly shocked with how swiftly demand additional accelerated nicely above historic tendencies and at larger charges,” Royal Caribbean CEO Jason Liberty mentioned.

The corporate now expects full-year adjusted revenue between $4.40 and $4.80 per share, in contrast with its earlier forecast of $3.00  to  $3.60 per share.

Earlier this week, rival Norwegian Cruise Line (NYSE:) Holdings Ltd additionally raised its annual revenue forecast.

Royal Caribbean forecast second-quarter adjusted earnings per share between $1.50 and $1.60, whereas analysts have been anticipating a revenue of 94 cents per share, in line with Refinitiv IBES knowledge.

It reported a lack of 23 cents per share, excluding gadgets, for the primary quarter, a lot smaller than expectations for a lack of 70 cents per share.

The corporate’s income of $2.89 billion topped analysts’ common estimate of $2.82 billion.