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NCL Reports Dismal Earnings, AgainMarch 3, 2008 By: Travel Agent Central Contributor Travel Agent
Norwegian Cruise Line reported a net loss of $227 million for 2007, which was far worse than the $130.9 net loss in 2006. The company, which all but ended its Hawaii operation, pulling two ships from rotation, said foreign exchange translation, higher interest rates and higher fuel costs all were to blame for revenue problems.
However, the line's president and CEO, Colin Veitch, is bullish on NCL's future now with the cash infusion from Apollo Management, the private equity firm that now owns 50 percent of the cruise line, and new initiatives. "With the addition of our new shareholders, the implementation of Freestyle 2.0 and Partnership 2.0 and a successful refinement of our strategy in Hawaii, we look forward to a promising year in 2008," Veitch said. "The improved financial condition of the company following the $1 billion equity investment by Apollo has given us the opportunity to expand on the success of our brand."
For the fourth quarter 2007, NCL reported a net loss of $133 million on total revenues of $497.5 million. (DE)