Norwegian Cruise Line (NCLH) has announced its return to profitability in 2021 after a two-year period of losses. The cruise company reported its first profitable year since 2019, with strong growth and ticket demand, as well as an encouraging forecast for 2024. As a result, shares of the company surged nearly 20%.
In the fourth quarter of 2023, Norwegian reported a net loss of $106.5 million, a significant improvement from the $482.5 million loss in the same period the previous year. Loss per share narrowed to 25 cents from $1.14. Adjusting for one-time items, Norwegian reported a loss per share of 18 cents. Despite these losses, the company’s revenue exceeded expectations, reaching $1.99 billion compared to the estimated $1.97 billion.
For the full year, Norwegian generated total revenue of $8.55 billion, a 32% increase from 2019, with a net income of $166.2 million. This marks a significant improvement from the $2.27 billion loss in 2022. The company boasted an impressive 102.9% occupancy rate for the year, and total revenue per passenger per day increased by 17% from pre-pandemic levels.
Norwegian Cruise Line Holdings experienced robust demand for most of its cruises throughout the year, except those traveling through the Middle East, which were canceled due to the violence in Gaza. However, even with these cancellations, occupancy only dipped slightly in the fourth quarter to 99.2%. CEO Harry Sommer highlighted the company’s dedication to innovation and commitment to providing exceptional vacation experiences for guests.
Looking ahead to 2024, Norwegian expects an adjusted profit of approximately $635 million, or $1.23 per share, and an occupancy rate of around 105%. Analysts had anticipated earnings per share of $1.21. The company is currently experiencing record-high booking levels due to healthy consumer demand.
This positive news from Norwegian Cruise Line has also had a ripple effect on other cruise companies. Shares of Royal Caribbean Cruises and Carnival Corp. also rose following the announcement.
Overall, Norwegian Cruise Line’s return to profitability in 2021 is a significant achievement for the company. Despite the challenges faced during the pandemic, the cruise industry is showing signs of recovery, with strong demand from consumers. With a positive outlook for 2024 and a commitment to providing exceptional vacation experiences, Norwegian Cruise Line is poised for continued success in the coming years.
 Announces Return to Profitability in 2021 and Strong Growth Forecast for 2024 | Shares Surge 20% - Read More!){kind=link}