For the first time since 2019, Norwegian Cruise Line declares a profit

On Tuesday, Norwegian Cruise Line Holdings said that its fourth-quarter losses had significantly decreased, marking the company’s first profitable year since 2019.

The cruise line reported rapid expansion and high demand for tickets, with a promising 2024 outlook. The report caused the company’s shares to rise by 10%.

Here’s how Norwegian’s fourth-quarter results stack up against LSEG’s (previously Refinitiv) projections:

• Loss per share: 18 cents vs. 14 cents expected
• Revenue: $1.99 billion vs. $1.97 billion expected
  

Norwegian had a net loss of $106.5 million for the last three months of 2023, which is an improvement over the $482.5 million loss during the same time the previous year. From $1.14 to 25 cents per share the previous year, the company’s loss per share shrank. Norwegian had a loss per share of eighteen cents after accounting for one-time expenses.

The company’s overall revenue for the year was $8.55 billion, up 32% from 2019; net income for the same period was $166.2 million. Norwegian lost $2.27 billion in 2022.

During the year, the company’s occupancy rate was 102.9%. Compared to pre-pandemic levels, total revenue per passenger per day grew by 17%.

With the exception of the cruises that went via the Middle East, which had to be canceled because of the conflict in Gaza, the business claimed that most of its cruises had strong interest. According to the firm, the cancellations only slightly reduced occupancy in the fourth quarter, which was 99.2%.

The business claimed that «healthy consumer demand» during the fourth quarter and entire year is the reason it is presently seeing record-high booking volumes.

The business projects an occupancy rate of around 105% and an adjusted profit of roughly $635 million, or $1.23 per share, for the entire year 2024. LSEG surveyed analysts who predicted $1.21 in earnings per share for 2024.