Norwegian Cruise Line is still experiencing major quarterly losses as a result of the pandemic like the rest of the industry, but those unprecedented deficits are at least getting smaller.
The Frank Del Rio-led owner of 28 ships under three brands posted a $509m loss for the second quarter of 2022, compared to a $718m loss a year earlier.
On an adjusted basis, the New York-listed cruise major reported a $478m loss for the quarter versus being $715m in the red during the first quarter of 2021.
These adjusted results led to a $1.14 loss per share for the second quarter, missing an analyst consensus by $0.28 but improving upon the year-ago loss per share by $0.81.
Despite the negative numbers, chief executive Frank Del Rio said he remains happy with his company’s slow progress towards profit, thanks to strong demand.
“We are encouraged by the continued strong consumer demand we are experiencing which is reflected in our record pricing, accelerating booking volumes, especially for 2023 and beyond, and highest ever onboard revenue generation,” he said in a statement.
“Having emerged from the pandemic and returning to more normal operations, we remain steadfast in our strategy and commitment to protect our brands’ positioning and industry-leading pricing, which we firmly believe is the best way to maximize long-term value for all our stakeholders.”
Norwegian relaunched its entire fleet in early May and had 65% occupancy, improving upon the 48% in occupancy achieved a year ago.
He said Norwegian expects overall occupancy to reach 85% by July 2023, but the war in Ukraine continues to hurt occupancy levels and revenue for European itineraries.
Revenue for this year’s second quarter came in at $1.4bn against $4.4m a year ago as a result of resuming cruising a year ago.
This helped Norwegian report positive cash flow for the second consecutive quarter, posting a $260m figure for this year’s second quarter.
But the owner expects to continue remaining in the red for the foreseeable future as it forecasted a net loss for the third quarter of 2022 due to the lingering effects of the pandemic, high fuel costs and the war in Ukraine.
For the first six months of 2022, Norwegian posted adjusted losses of $1.24bn versus $1.38bn a year earlier. Revenue totalled $1.71bn against $7.47m a year ago.
