Norwegian Cruise Line Holdings Achieves Historic Revenue in Third Quarter of 2023
Norwegian Cruise Line Holdings Ltd. (NCLH) has reported its highest-ever total revenue for the third quarter of 2023, demonstrating a strong recovery and growth in the cruise industry. This record-breaking performance is attributed to a combination of higher cruise prices, robust demand, and effective cost-cutting strategies.
Harry Sommer, President and CEO of NCLH, highlighted the company’s successful third-quarter results, which were driven by strong demand from its upmarket consumer base and ongoing efforts to enhance margins and reduce costs. Sommer also noted the company’s cautious approach in moderating short-term expectations, considering the rapidly changing global macroeconomic and geopolitical landscape. Despite these challenges, NCLH remains optimistic about its forward booked position and robust pricing.
For the third quarter, NCLH, which operates Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises, announced a record total revenue of $2.5 billion. This figure represents a 33 percent increase over the third quarter of 2019. The company’s GAAP net income stood at $345.9 million, with an Adjusted EBITDA of $752 million.
The impressive earnings are partly due to higher cruise costs and bookings, as well as strong occupancy rates exceeding 100 percent. The occupancy rate for the quarter was 106 percent, and the total revenue per Passenger Cruise Day increased by 16 percent compared to the pre-pandemic average.
As of September 30, 2023, NCLH’s advance ticket sales balance reached $3.1 billion, approximately 56 percent higher than the same period in 2019.
The company also faced challenges during the quarter, including operational impacts due to global events in Hawaii and the Middle East. NCLH adapted its inter-island Hawaii itineraries and canceled or adjusted calls to Israel and surrounding areas for the remainder of 2023 and all of 2024.
In addition to its operational achievements, NCLH has committed to sustainable development through partnerships with organizations like the Global Maritime Forum and its Getting to Zero Coalition. The company’s focus on sustainability aligns with its broader goals. NCLH also demonstrated its community support by donating $50,000 to Maui United Way following the wildfires.
Looking ahead to the fourth quarter, NCLH anticipates continued growth, although Net Per Diem and Net Yield growth may be below previous expectations due to recent global events and changing booking patterns. Nonetheless, the company remains positive about the closing months of 2023, reflecting its resilience and adaptability in a dynamic industry environment.