Royal Caribbean increased its profit forecast for the third consecutive year on Thursday, citing the continued demand for cruise holidays and the higher ticket prices.

The cruise operator's share price was down about 2% just before the bell rang after the company announced that it expected higher cruise costs this year.

Royal Caribbean and other cruise lines, such as Norwegian Cruise Line, Carnival, have raised ticket prices to capitalize on the record demand.

As inflation remains high in the United States, cruise vacations are still cheaper than other options.

Royal Caribbean CEO Jason Liberty stated that "exceptional demand for our holiday experiences has accelerated the performance of our company by generating significant growth in yield over the past few years."

The company's shares are up 27% this year so far. It said that it had met its financial goals 18 months sooner than expected.

Royal Caribbean's net costs of cruises, excluding fuel, rose 5.7% during the second quarter compared to its previous expectations for a 5.5% rise.

The company expects to earn between $11.35-$11.45 per share, compared to its previous expectations of $10.70 - $10.90. Reporting by Juveria tabassum and Doyinsola oladipo, Editing by Krishna Chandra Eluri & Shounak Dasgupta