Norwegian reports demand for its cruises

MIAMI — Norwegian Cruise Line Holdings Ltd. reported firstquarter earnings Thursday that missed analysts’ expectations. But the Miami-based company said it is already seeing demand for voyages in the fourth quarter of this year and into 2021.

Norwegian reported a net loss of $1.88 billion US, or an adjusted loss of 99 cents per share, missing analysts’ expectations of a loss of $0.28 per share.

The loss compares with net income of $118.2 million, or 54 cents a share, in the same period a year ago. Revenues for the quarter just ended fell 11.2 per cent to $1.25 billion, narrowly missing analysts’ expectations of $1.28 billion.

In its earnings release, Norwegian touted having recently raised $2.4 billion in “oversubscribed” debt and equity offerings. It said its total cash position is now $3.7 billion — enough to cover 18 months of suspended voyages, CEO Frank Del Rio said.

Notably, the company sees ongoing interest in cruises despite the ongoing pandemic.

Norwegian said it sees demand for cruise vacations beginning in the fourth quarter of this year and accelerating through 2021, “with the Company’s overall booked position and pricing for 2021 within historical ranges.

“Our guests continue to demonstrate their desire for cruise vacations and we continue to experience demand for voyages further in the future across our three brands,” Del Rio said.

Norwegian shares were down more than three per cent in a broader market sell-off, as the latest U.S. unemployment report came in worse than expected.