FILE PHOTO: The cruise ship of the Norwegian Cruise Line 'Norwegian Dawn" departs the Royal Naval Dockyard July 16, 2013 near the port of Hamilton, Bermuda. REUTERS/Gary Cameron (BERMUDA)
Nov 4 (Reuters) – Norwegian Cruise Line Holdings forecast fourth-quarter profit below expectations on Tuesday, on cost uncertainties and subdued consumer appetite for sea-based vacations as travelers curb spending, sending its shares down 11%.
Consumers are thinking twice before splurging on expensive cruise vacations amid persistent inflation and tariff-driven uncertainty in the United States following a post-pandemic demand boom for cruises.
The U.S. government shutdown, which impacts port activity and the travel plans of American consumers, especially as the crucial holiday season approaches, is also clouding demand.
Fluctuating fuel prices owing to escalating geopolitical tensions, including in the Middle East, also pressure cruise operators, along with expenses related to drydocks, ship deliveries and maintenance.
Norwegian Cruise Line sees current-quarter adjusted profit per share of 27 cents, below the estimate of 30 cents, according to data compiled by LSEG.
Quarterly revenue rose 4.7% to $2.94 billion, compared with analysts’ expectation of a 7.5% rise to $3.02 billion. It had risen 10.7% in the year-ago quarter.
It said lower air program participation – where the company helps coordinate flights to fit a planned cruise itinerary – affected revenue.
Analysts said investments into upgrading Great Stirrup Cay, one of the company’s two island destinations, would help boost demand.
Norwegian said starting early 2026, it would optimize its marketing strategy to reach a broader family market.
Occupancy fell to 106.4% from 108.1% a year ago, while fuel price per metric ton, net of hedges, increased to $744 from $699 a year ago.
However, it lifted its adjusted profit forecast to $2.10 per share, compared to the previous forecast of $2.05 per share, and reported adjusted profit per share of $1.20, compared to estimates of $1.16 per share for the third quarter.
Peer Royal Caribbean RCL.N also raised its annual profit forecast last week, but forecast current-quarter profit below estimates on higher costs.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Pooja Desai)
(c) Copyright Thomson Reuters 2025.
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