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Norwegian Cruise Line Holdings recently forecast full-year profit below Wall Street estimates, as the cruise operator struggles with soaring fuel and labor costs even as travel demand bounces back.
Shares fell about 8 per cent in premarket trade after the company also forecast a bigger-than-expected first-quarter loss.
Cruise operators like Carnival Corp and Norwegian Cruise Line Holdings have been struggling with rising interest rates, a stronger dollar and soaring food as well as fuel prices due to the conflict in Ukraine.
The Miami, Florida-based cruise operator also reported a smaller-than-expected loss, sending its shares up about 3 per cent in premarket trading. While inflation has eaten into savings of lower-income households, more affluent consumers are rushing back to travel, fueling demand at cruise operators such as Norwegian which have now relaxed pandemic-related restrictions onboard.
The cruise operator forecast a profit 70 cents per share for 2023, compared with estimates for a profit of USD 1.06, according to IBES data from Refinitiv. The company forecast a loss of 45 cents per share for the first quarter, compared with estimates for a loss of 33 cents per share.
Fourth-quarter revenue rose to USD 1.52 billion from USD 487.4 million a year earlier, compared with analysts’ average estimate of USD 1.50 billion.
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