Norwegian Cruise Line Holdings celebrated a significant financial turnaround, marking its first profitable year since 2019. This achievement came with a dramatic narrowing of fourth-quarter losses, indicating strong growth and ticket demand alongside a positive forecast for 2024. Following this announcement, shares of the company experienced a substantial 17% increase.
Fourth Quarter Performance Highlights
In the final quarter, Norwegian Cruise Line showcased an impressive recovery, reporting a net loss of $106.5 million, a stark improvement from the $482.5 million loss recorded in the same period of the previous year. Adjusted for one-time items, the loss per share was 18 cents, slightly wider than the expected 14 cents. Revenue for the quarter reached $1.99 billion, surpassing the $1.97 billion forecast by LSEG (formerly known as Refinitiv).
Yearly Financial Growth and Achievements
For the entirety of 2023, Norwegian Cruise Line generated total revenue of $8.55 billion, a 32% increase from 2019, with net income standing at $166.2 million, in contrast to a loss of $2.27 billion in 2022. The company achieved an impressive 102.9% occupancy rate for the year, with revenue per passenger per day up 17% from pre-pandemic levels. Despite facing challenges such as cancellations of Middle East cruises due to violence in Gaza, the occupancy rate only slightly declined to 99.2% in the fourth quarter.
Looking Ahead: 2024 Forecasts and Record Bookings
Norwegian Cruise Line’s CEO, Harry Sommer, highlighted the delivery of three new ships in 2023, marking a historic milestone in the company’s 57-year history. This expansion underscores Norwegian’s commitment to innovation and exceptional vacation experiences. With record-high booking levels driven by robust consumer demand, the company anticipates an adjusted profit of about $635 million, or $1.23 per share, for 2024, with an expected occupancy rate of 105%.
