Earnings

Norwegian Cruise Line shares fall as revenue, outlook lag pre-pandemic levels

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The Norwegian Pearl uses the turning basin as it docks at PortMiami on January 05, 2022 in Miami, Florida.
Joe Raedle | Getty Images

Shares of Norwegian Cruise Line fell Tuesday after the company reported second-quarter results that lagged pre-pandemic levels and warned of persistent volatility ahead.

The company reported revenue of $1.19 billion and an adjusted loss per share of $1.14 for the period, improvement from the second quarter of 2021 before voyages had resumed, but still far short of the $1.66 billion in revenue and earnings per share of $1.30 from the same quarter in 2019.

It expects third-quarter revenue between $1.5 billion and $1.6 billion, down from $1.9 billion in Q3 2019, and still anticipates a net loss due to costs associated with the Covid-19 pandemic, Ukraine-Russia conflict, inflation, fuel prices and foreign exchange.

Shares were down around 11% in mid-afternoon trading.

Norwegian, however, announced lighter Covid protocols that is calls “meaningfully positive” toward expanding the cruise market and catalyzing the company’s recovery from the pandemic.

The company said it will welcome unvaccinated passengers who present a negative Covid test starting September 3, subject to local regulations.

As a result, Norwegian expects cruise occupancy to be in the “low 80% range” in the current quarter, up from 65% during the second quarter.

The cruise company also reported a nearly 20% jump in revenue per passenger cruise day compared with 2019.

Read the full report here.

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