NCL Reduces Second-Quarter Losses

Norwegian Cruise Line reported its second quarter results on Wednesday, and while the numbers were better than last year's, the cruise line still lost a net total of $24.6 million. At the same time last year, the line reported net losses of $35.1 million. The cruise line, which is owned by Star Cruises, did report a revenue increase of 10 percent, due to a 13.6 percent bump in ship capacity. However, the increase was offset by lower ticket prices on the line's Hawaiian cruises, resulting in a 2.5 percent decrease in net yields. Hawaii remains a challenge for the line said NCL's president and CEO, Colin Veitch. NCL did cut its costs by 6.5 percent this quarter compared to the same time last year by lowering its payroll and fuel costs and better timing of dry docks. The company said it is still feeling the sting of rising interest rates and a weak U.S. dollar. Veitch did remark that 2008 is looking rosier, stating "positive indications that the measures we have implemented thus far are beginning to work." Moreover, there is optimism after a $1 billion investment by Apollo Management last week. NCL will launch its newest ship, Norwegian Gem, in October.

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