Royal Caribbean Group's second-quarter earnings report for 2023 has exceeded profit expectations, driven by robust cruise bookings across various regions and a surge in onboard revenues through passenger spending.

On Thursday, Royal Caribbean Cruises Ltd. saw a significant surge in its stocks after raising its full-year earnings forecast to a level that greatly exceeded expectations. Investors are betting that the growing demand for their cruises indicates that the battered industry may have turned a corner.

Royal Caribbean expects adjusted earnings per share to range from $6.00 to $6.20 this year, up from its previous forecast of $4.40 to $4.80. This overshadowed analysts' median estimate of $4.73, leading Royal Caribbean's stocks to rise by as much as 8.6% at Thursday's opening. Rivals Carnival Corp. and Norwegian Cruise Line Holdings also experienced increases of 6.6% and 6.3%, respectively.

These earnings add to what has already been a stellar year for the three major cruise companies (all of which have more than doubled their stock prices). It suggests a faster-than-expected recovery for an industry that was among the hardest hit during the early days of the Covid-19 pandemic, with outbreaks leaving customers stranded on cruise ships as the virus spread.

"The demand for cruises and our brands is exceptionally strong, and we have seen another shift in booking volumes and prices, leading us to expect double-digit net yield growth for the whole year," said Royal Caribbean's CEO, Jason Liberty, in a statement.

According to the company's earnings report on Thursday, bookings for next year's trips "increased significantly compared to all previous years at record prices," as European demand accelerated. Onboard consumer spending, as well as pre-cruise purchases, also saw an uptick.

An S&P index of hotels, resorts, and cruise lines has surged by more than 40% this year, reaching its highest level since February 28, 2022. In the same period, the S&P 500 rose by 19%.