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TUI delivering 'exceptional' returns, new ships a 'powerful driver'

TUI Cruises
TUI newbuilds 'a powerful driver' - Mein Schiff 3 at its naming in June
TUI Cruises continues to deliver 'exceptional returns' but below the line, Royal Caribbean chairman and ceo Richard Fain said Thursday. With three newbuilds over the next three years, the German joint venture with TUI AG will continue to be accretive to earnings, he added.

'TUI Cruises has been a very solid performer. I dearly wish they were included in our yield stats because it would make them look very good,' Fain told analysts during the Royal Caribbean's third quarter earnings call.

TUI has done 'an exceptional job of positioning itself in a very good way in a very good market,' Fain said. The Mein Schiff newbuilds are 'a powerful driver,' and their fuel consumption is a fraction of what is was for the older ships.

Royal Caribbean listed $18.8m of 'other income' in Q3. 'A large percentage of that was related to TUI,' cfo Jason Liberty said.

The company noted TUI Cruises' additional capacity continues to be a key contributor to Q4 earnings.

The brand's first newbuild, Mein Schiff 3, entered service in June.