Norwegian Cruise Line Stack and Waterslide. Photo by John Konrad 2020
(Bloomberg) —
Norwegian Cruise Line Holdings rose in pre-market trading after issuing its initial financial guidance for 2024 ahead of Wall Street expectations due to strong demand for its cruises.
Adjusted earnings will be around $1.23 per share in 2024, according to a statement Tuesday morning. Analysts had expected $1.21 per share. Norwegian also said occupancy should be 105.1%, ahead of estimates for 104.9% as it experiences record setting booking trends.
Shares rose over 8% at 8:07 a.m. in New York. Fellow cruise operators Royal Caribbean Cruises Ltd. and Carnival Corp were trading more than 3% higher after the results.
The results are the latest evidence that demand for cruises has yet to subside this year. Last week, Royal Caribbean also upgraded its 2024 outlook as demand for its cruises continued to outpace their expectations, allaying fears of an industry slowdown.
“We are determined to capitalize on our recent achievements and take advantage of the positive momentum and strong demand for cruise,” Chief Executive Officer Harry Sommer said in the statement.
Norwegian said its bookings are at an all time high, matching similar statements from Royal Caribbean.
Miami, Florida-based Norwegian is expecting strong financial performance despite having to cancel and reroute all its itineraries to Israel and the Red Sea this year due to the ongoing conflict in the region. Trips to the Middle East represented 4% of its capacity this year.
Previously, Carnival said rerouted trips would impact its earnings by as much as eight cents per share, while Royal Caribbean sees minimal impact.
The shipping world has been contending with major disruptions in the Red Sea, a critical route for the industry, due to attacks launched at vessels by the Yemen-based Houthis in protest to Israel’s Invasion of Gaza.
© 2024 Bloomberg L.P.
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