NCLH CHIEF 'ENCOURAGED BY FUTURE DEMAND' AMID COVID CHALLENGES

Norwegian Jade currently in Naples.

Despite Norwegian Cruise Line Holdings (NCLH) facing “a long road of recovery ahead”, the group’s chief says he is “encouraged by continued demand” for future sailings from customers across its brands.

In an update released with NCLH’s 2020 third-quarter results, president and chief executive Frank Del Rio said recently issued framework by the US CDC was “a step in the right direction” on the industry’s path to a safe resumption of operations.

 

“We will 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.”

 

NCLH reported a net loss during the three months to 30 September of $677.4 million compared with a profit of $450.6 million year-on-year.

 

Revenue fell to $6.5 million, from $1.9 billion over the same period last year “due to the complete suspension of voyages in the quarter”.

 

NCLH added that it had a sustained monthly average cash burn of $150 million in the third quarter – which it expected to rise to $175 million a month in the current quarter.

 

Despite booking levels as a result of Covid-19 remaining “below historical levels”, NCLH said there “continues to be demand for future cruise vacations” particularly for sailings in the second half of 2021.

The group reported $1.2 billion of advance ticket sales at the end of September, including about $850 million of future cruise credits.

 

NCLH said pricing for 2021 “is in line with pre-pandemic levels”, even after including “the dilutive impact” of future cruise credits.

 

The company emphasised its claims for “pent-up future demand” through recent booking records in September and October.

 

Successes included Oceania Cruises’ Labor Day upgrade sale which was the most successful holiday promotion in the line’s history, a new World Cruise opening day booking record for Regent Seven Seas Cruises’ 2023 World Cruise and a new all-time largest single booking day in Regent’s history with the launch of its 2022-2023 Voyage Collection.