Norwegian Cruise Line Holdings Ltd. (NCLH) beat Wall Street expectations with a third-quarter profit but still saw its stock price drop on rising expenditures.
The parent of Norwegian Cruise Line, Oceania, and Regent Seven Seas posted a third-quarter profit of $345.9 million. However, it trimmed the full-year outlook on higher-than-expected costs.
Maui fires and Israel conflict
The company flagged higher food and labor costs while it took a financial hit from the Maui wildfires. The fallout from the fires is still impacting bookings. Norwegian Cruise Lines has a ship, Pride of America, permanently based in the Hawaii Islands.
Unsurprisingly, it has seen many cancelations due to the conflict in Israel. NCL and Oceania Cruises have canceled port calls in Israel and the region until 2024.
These two issues have impacted fourth-quarter revenues. “We are prudently moderating short-term expectations and keeping a close eye on rapidly evolving global macroeconomic and geopolitical events,” said Norwegian Cruise Line Holdings CEO Harry Sommer.
“One of the main strengths in our industry is our ability to reposition our assets, which is what we’ve done with the heightened tensions in the Middle East,” Summer added. Elsewhere, demand remains strong.
NCL teases details of new ship Norwegian Aqua
Looking ahead short term, NCLH predicts 98% occupancy for Q4. Meanwhile, primary cruise brand NCL unveiled details of the upcoming new ship Norwegian Aqua. Set to begin sailing in 2025, it is the first of the upgraded Prima Plus Class ships. Bookings are now open for Aqua’s first voyages to the Caribbean from Port Canaveral.
It will have an overall 10% size and capacity increase compared to current Prima class sister ships, accommodating 3,571 guests. Norwegian Aqua will offer the world’s first hybrid rollercoaster and waterslide, called the Aqua Slidecoaster, alongside existing Prima class attraction The Drop, a 10-story free-fall slide. Norwegian Aqua is currently under construction at Italian shipbuilder Fincantieri.