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Sep 30, 2021
Norwegian Cruise Line Q3 2021 Earnings Report
Norwegian Cruise Line's Great Cruise Comeback was on track with 11 ships resuming cruising, showing positive trends in onboard revenue and guest satisfaction. However, the Delta variant caused a slowdown in bookings during the quarter.
Key Takeaways
Norwegian Cruise Line Holdings reported increased revenue to $153.1 million compared to $6.5 million in 2020 as cruise voyages resumed in the quarter. The company had approximately 40% of its capacity operating by the end of the third quarter 2021 with the fleet in service being cash flow positive in the quarter. Occupancy in the third quarter 2021 was 57.4%, reflecting the Company’s self-imposed occupancy limits.
The Company had approximately 40% of its capacity operating by the end of the third quarter 2021 with the fleet in service being cash flow positive in the quarter.
Occupancy in the third quarter 2021 was 57.4%, reflecting the Company’s self-imposed occupancy limits.
Approximately 75% of capacity is expected to be operating by year-end 2021 with the full fleet back in operation by April 1, 2022.
The Company expects to be profitable for the second half of 2022.
Norwegian Cruise Line
Norwegian Cruise Line
Forward Guidance
The Company expects to report a net loss for the fourth quarter and full year ending December 31, 2021 and expects to report a net loss until the Company is able to resume regular voyages. Based on its current trajectory and market and public health conditions, the Company expects to be profitable for the second half of 2022.
Positive Outlook
- Strong Future Demand Across All Three Brands
- Company Expects to be Operating Cash Flow Positive in Late First Quarter 2022
- Company Expects to be Profitable for Second Half 2022
- Net bookings have materially improved over the past six weeks with particular strength for bookings related to sailings in the second half of 2022 and into 2023.
- The Company’s overall cumulative booked position for full year 2022 is in line with 2019’s record levels at higher pricing even when including the dilutive impact of future cruise credits (“FCCs”).
Challenges Ahead
- As a result of the COVID-19 pandemic, the Company cannot estimate the impact on its business, financial condition or near- or longer-term financial or operational results with certainty.
- The Company will report a net loss for the fourth quarter and full year ending December 31, 2021.
- The Company expects to report a net loss until the Company is able to resume regular voyages.
- Net booking volumes in the third quarter 2021 were negatively impacted by the Delta variant.
- The resulting slowdown in net booking volumes was heavily weighted to sailings in the fourth quarter of 2021 and early 2022.