Norwegian Cruise boosts annual profit forecast as demand for cruises rises

Cruise ships Norwegian Dawn and Grandeur of the Seas are seen in port near Hamilton Bermuda. REUTERS/Gary Cameron (BERMUDA)
Norwegian Cruise Line Holdings raised its profit forecast for the third time, benefitting from high demand for luxury travel. CEO Harry Sommer reported record bookings for budget cruises, leading to increased ticket prices. Despite strong earnings in Q2, the company's shares declined due to rising oil prices and slightly lower revenue expectations.
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Norwegian Cruise Line Holdings has raised its annual profit forecast for the third time due to strong demand for luxury travel and higher ticket prices. The company is experiencing robust demand with record ticket pre-sales, leading to increased earnings expectations. Rivals Carnival and Royal Caribbean Group have also raised their earnings forecasts recently, despite concerns about rising costs.

Most new bookings for Norwegian are focused on cruises in 2025, with adjusted earnings expected to reach $1.53 per share for fiscal 2024. However, the company’s shares fell in afternoon trading due to higher crude oil prices impacting the sector. Quarterly revenue fell short of expectations, but onboard and other revenues rose 6%, with CEO Sommer noting no decline in onboard spending.

Analysts believe investor expectations are high following Royal Caribbean’s strong results, leading to some disappointment in Norwegian’s revenue numbers. Despite this, the company remains optimistic about its performance and continued strong demand for luxury travel experiences.

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