Shares of Royal Caribbean Group sailed toward a two-month high Thursday, after the cruise operator reported a much narrower-than-expected loss and raised its full-year profit outlook, as demand for leisure travel continued to strengthen.

Jason Liberty, Chief Executive Officer of Liberty Travel Group, said: “We knew demand for our company was strong and growing. But we were pleasantly surprised at how quickly it accelerated above historical trends. Leisure travel continues to grow as consumers’ spending shifts more towards experiences.

Stock RCL +6.86% jumped 7.2% during morning trading. This is the best performance since March 8th. The stock a class=”qt-chip positive” data-charting-symbol=”STOCK/US/XNYS/RCL” data-track-hover=”QuotePeek” href=”” rel=”noopener” target=”_blank>RCL, +6.86%/a> ran up 7.2% in morning trading

Norwegian Cruise Line Holdings Ltd. -3.15% and Carnival Corp. CCL -1.60% also saw their shares fall.

Also see: Norwegian Cruise Line shares surge after revenue exceeds expectations

Royal Caribbean reported a net loss of $47.9m, or 19c per share, compared to $1.17billion, or $4.58 per share, during the same period last year.

The adjusted loss per share of 23 cents, excluding non-recurring items was one third of the FactSet consensus loss of 69 cents.

The revenue increased by 172.4%, to $2.89 Billion, exceeding the FactSet consensus estimate of $2.82 Billion. Passenger ticket revenue rose 190.9%, to $1.90 Billion, and onboard, and other revenue grew by 142.7%, to $988.6 Million.

This was a significant increase over the results of the first quarter 2019, which saw total revenues of $2.44 billion with revenue from passenger tickets of $1.71billion and revenue from onboard and other sources of revenue of $729.8m.

Net yields increased by 5.1% and load factors reached 102% compared to the first quarter 2019.

According to a FactSet transcription, CEO Liberty stated that “[W]hat transpired was an extended Wave season which translated into robust bookings as well as meaningfully lower prices” on a conference call after earnings. Wave season is the peak promotion season for cruises, which takes place in the first quarter.

FactSet and MarketWatch

He said that the strong performance of the employees and the rapid growth in demand will translate into higher earnings for the year.

The company has raised its 2023 guidance for adjusted earnings per shares to $4.40-$4.80, from $3.00-$3.60. This compares to the current FactSet consensus at $3.42, and the 2019 EPS of $8.54.

The net yield guidance was increased to between 6.25% – 7.25%, from 2.5% – 4.5%.

Royal Caribbean stock is up 34.9% for the year so far, according to data through Wednesday. The S&P 500 index SPX, -0.85%, however, has only gained 5.7%. Carnival shares are up 16.4% and Norwegian stock is up 13.4%.