NCLH plans US trial cruises by Jan

NORWEGIAN Cruise Line Holdings (NCLH) believes it could be operating trial voyages in US waters under the new Centers for Disease Control (CDC) protocols (CW 02 Nov) as early as Jan 2021, but CEO Frank Del Rio has stressed that “it’s not a race”.

Speaking at a third quarter results announcement overnight, which confirmed a US$677 million loss for the three months to 30 Sep, Del Rio said NCLH would “continue to collaborate with the CDC on next steps to relaunch operations with a shared goal of protecting the health and safety of our guests, crew and the communities we visit”.

“While we have a long road of recovery ahead of us, we are encouraged by the continued demand for future cruise vacations, especially from our loyal past guests, across all three of our brands.”

Despite limited marketing efforts bookings continue to come in, with sales for voyages in the second half of 2021 currently in line with historical ranges, the company said, while pricing is in line with pre-pandemic levels even after taking into account the “dilutive impact of future cruise credits,” the company noted.

NCLH’s monthly average cash burn rate for the third quarter was approximately US$150 million, and it is projecting a higher rate of approximately US$175 million per month for the fourth quarter, due to additional costs related to the prospective return to service of its ships.

“We are focused on positioning the company to not only withstand an extended COVID-19 disruption but to emerge from this period with a clear path for long-term financial recovery,” said Executive Vice President & Chief Financial Officer Mark Kempa.

“Our swift actions to adapt to this unprecedented environment by reducing costs, conserving cash and enhancing our liquidity profile will bolster our efforts to navigate through COVID-19, relaunch our vessels and, over the longer-term, optimise our balance sheet and resume our consistent track record.”