Despite a total revenue in 2022 ($1.5 billion) that equated to GAAP net loss of $482.5 million, Norwegian Cruise Line Holdings (NCLH)—which owns Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises—saw promising signs late last year and during this year’s Wave Season that projects good things to come for the company.
While occupancy reached 87 percent in the fourth quarter, as part of the company’s ramp-up of business (consistent with previously outlined expectations and with the gap versus 2019 continually shrinking), ticket pricing and onboard revenue generation resulted in better-than-expected total revenue per passenger cruise day, which was up approximately 23 percent compared to the same period in 2019.
Looking forward, NCLH reports that Wave Season demand has been “very strong”—with the company’s highest ever booking months in November 2022 and January 2023. Occupancy is expected to average approximately 100 percent for the first quarter “and is on track to reach historical levels for the second quarter.” In all, the company entered the year with a record cumulative booked position of approximately 62 percent for full year 2023, in line with previously outlined expectations and within its optimal 60 to 65 percent range—and at higher prices than 2019 at a similar point in time.
Growth will also come as capacity is expected to increase approximately 19 percent compared to 2019 due to the delivery of three newbuilds in 2023: Oceania Cruises’ Vista, Norwegian Viva and Regent’s Seven Seas Grandeur.
As of December 31, 2022, the company’s total debt position was $13.6 billion and the company’s liquidity was approximately $1.9 billion, consisting of cash and cash equivalents of $947 million and a $1 billion undrawn commitment. NCLH has made several moves since Q3 2022 to enhance its liquidity profile and financial flexibility.
Visit www.nclhltd.com.
Related Stories
Regent Seven Seas, Oceania Cruises Have New Presidents
Swan Hellenic Expands its North America Team
Norwegian Cruise Line CEO: "No NCFs" Brings Booking Surge
Atlas’ New Yacht World Traveller to Visit the Arctic and Iceland