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Cruise ship Norwegian Dawn arrives in the French Mediterranean port of Marseille on July 27, 2021.
Gérard Bottino | SOPA Pictures | LightRocket | Getty Images
Norwegian Cruise Line reported mixed results for the second quarter on Friday, with future bookings remaining strong ahead of its first cruise to the United States since last year.
On Saturday, Norwegian Encore will sail from Seattle to Alaska. The cruise line said it plans to bring 40% of its fleet capacity into service by the end of the third quarter and 75% by the end of the year. The company plans to resume at full capacity by April 1.
The company will require all passengers to be vaccinated on all of its trips through its three brands.
“We are ready and eager to welcome our passengers again and continue to see incredible strength in our booking trends for future cruises,” said Frank Del Rio, President and CEO of Norwegian Cruise Line.
The company’s shares rose less than 1% in pre-market trading.
Here’s how the company fared for its second quarter ended June 30 compared to what analysts polled by Refinitiv were anticipating:
- Loss per share: $ 1.93 adjusted vs $ 1.97 expected
- Income: $ 4.37 M vs $ 10 M expected
In its second quarter, the company recorded a net loss of $ 717.8 million, or $ 1.94 per share, compared with a loss of $ 715.2 million, or $ 2.99 per share, a year earlier.
Excluding items, the company lost $ 1.93 per share, a smaller loss than the $ 1.97 per share loss expected by analysts polled by Refinitiv.
Revenue fell to $ 4.37 million, well below the $ 10 million expected by analysts.
However, the company said bookings for 2022 were significantly ahead of record highs in 2019, given future cruise credits.
At the end of the second quarter, the cruise line had $ 1.4 billion in advance ticket sales, of which $ 800 million was from future cruise credits.
As it prepared to return to service, the company recorded average monthly cash consumption of $ 200 million in the quarter, higher than the previous quarter’s rate and earlier forecast of $ 190 million.
Norwegian Cruise Line shares have fallen nearly 5% this year as the cruise industry has remained closed due to Covid-19.
At the height of the pandemic, several high-profile epidemics aboard ships prompted the Centers for Disease Control and Prevention to impose severe restrictions on cruise passengers.
Earlier this year, as vaccinations hinted at an industry rebound, cruise stocks were on the rise, but the spread of the highly contagious delta variant in recent weeks has reversed the stock’s trend.
Last month, Norwegian Cruise Line filed a lawsuit against the Florida Surgeon General to end state law prohibiting companies from being able to require customers to show proof of vaccination. In the court filing, the company said it would like to require customers to show proof of vaccination on all of its cruises.
This is last minute news. Please check for updates.
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