Richard Fain-led Royal Caribbean booked a profit of $24.7m in the quarter, overturning a loss of $3.7m 12 month ago when the cruise industry was still reeling from the Costa Concordia tragedy.

The owner says a fire onboard the Grandeur of the Seas (built 1996) in May led to a $0.05 per share hit in the quarter.

Adjusted for this and other one-off items the company recorded earnings per share of $0.23, ahead of the $0.09 per share analysts had predicted.

For the full year Royal Caribbean is looking for a profit of between $2.20 and $2.30 per share.

Fain says a cost savings strategy is beginning to be felt positively on its balance sheet.

“While the operating environment has been frustrating, our bookings trajectory is looking good and I’m thrilled to see our cost initiatives beginning to pay off,” he added in a statement.

“Exploiting this positive momentum will help us take our returns and our profitability to the next level.”