Monday, December 4, 2023
HomeCruiseNorwegian Cruise Line cuts full-year income outlook

Norwegian Cruise Line cuts full-year income outlook

Published Nov 01, 2023 07:45AM ET
© Reuters
NCLH +0.59% Add to/Remove from Watchlist CCL +0.53% Add to/Remove from Watchlist RCL -1.32% Add to/Remove from Watchlist — Norwegian Cruise Line (NYSE: ) slashed its full-year adjusted earnings per share guidance, as the travel company flagged the impact of global events like the Israel-Hamas conflict and wildfires in Hawaii, as well as elevated fuel costs.
In a statement, the Miami-based cruise operator said it has “cancelled and redirected all calls” to Israel and the surrounding region for the remainder of 2023 following the escalation of violence in the area.
“The [c]ompany is also in the process of cancelling all calls to Israel in 2024 as well, and will continue to closely monitor and evaluate future sailings and adjust as needed,” Norwegian noted.
Prior to the intensified hostilities, about 7% of fourth-quarter 2023 capacity and 4% of full-year 2024 capacity visited the Middle East, the firm added.
Norwegian also said deadly wildfires in the Hawaiian island of Maui in August led to a temporary slowdown in close-in bookings for sailings in the islands, “primarily concentrated in the fourth quarter” of this year.
As a result of these issues, Norwegian warned that full-year 2023 occupancy is expected to average 102.6%, slightly lower than its prior guidance of 103.5%.
Meanwhile, higher expenses for items like fuel, food and raw materials, along with a stronger U.S. dollar, have eaten into a post-pandemic surge in demand for leisure getaways.
Norwegian now expects annual adjusted earnings per share to come in at $0.73, down from a prior forecast of $0.80 a share.
Shares were lower in premarket U.S. trading on Wednesday.



Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Recent Comments

Translate »