Norwegian Cruise Line Holdings Raises Profit Forecast on High Demand

Norwegian Cruise Line Holdings has increased its full-year profit forecast for the second time in less than three weeks, citing high demand for cruise travel and higher ticket prices. The company has seen a trend of travelers choosing sea vacations over expensive land trips, which benefits cruise operators by allowing them to raise prices. CEO Harry Sommer highlighted strong intent from all demographics, including Millennials and Generation Z, to return to cruising.

The company now expects adjusted earnings of $1.42 per share, up from a previous forecast of $1.32, with around 34.7 million passengers expected to take a cruise this year. Norwegian has also ordered eight new ships across its brands to meet the growing demand. Despite missing first-quarter revenue estimates, the company remains optimistic about its financial outlook, expecting to generate total revenue of about $9 billion this year.

Norwegian’s shares initially dropped in early May following the revenue miss, but have since rebounded with the raised profit forecast. Analysts see the company’s growth potential positively, with expectations of a two-year compound annual growth rate of over 30% from 2024 to 2026. The cruise industry as a whole is seeing a resurgence, with record demand for cruise travel driving optimism for the future.

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