Norwegian Cruise Line Holdings forecast fourth-quarter profit below expectations on Tuesday, on cost uncertainties and subdued consumer appetite for sea-based vacations as travelers curb spending, sending its shares down 11%.Consumers are thinking…
Norwegian Cruise Line Holdings forecast fourth-quarter profit below expectations on Tuesday, on cost uncertainties and subdued consumer appetite for sea-based vacations as travelers curb spending, sending its shares down 11%.
Consumers are thinking twice before splurging on expensive cruise vacations amid persistent inflation and tariff-driven uncertainty in the United States following a post-pandemic demand boom for cruises.
The U.S. government shutdown, which impacts port activity and the travel plans of American consumers, especially as the crucial holiday season approaches, is also clouding demand.
Fluctuating fuel prices owing to escalating geopolitical tensions, including in the Middle East, also pressure cruise operators, along with expenses related to drydocks, ship deliveries and maintenance.
Norwegian Cruise Line sees current-quarter adjusted profit per share of 27 cents, below the estimate of 30 cents, according to data compiled by LSEG.
Quarterly revenue rose 4.7% to $2.94 billion, compared with analysts' expectation of a 7.5% rise to $3.02 billion. It had risen 10.7% in the year-ago quarter.
It said lower air program participation - where the company helps coordinate flights to fit a planned cruise itinerary - affected revenue.
Analysts said investments into upgrading Great Stirrup Cay, one of the company's two island destinations, would help boost
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