Mainstream cruise operator Norwegian Cruise Line has reported a 19% increase in third quarter net profit thanks in part to a decrease in its costs of operation.
The line credited financial ‘discipline and rigour’ for the performance which has seen net costs per capacity day fall by 3.3%.
This was largely down to efficiencies in business processes and lower ship operating costs as well as the timing of maintenance and repair of its fleet.
Third quarter figures show net income rose from $107.5 million out of overall revenue of $666.6 million for the same three month period in 2011, to $128.2 million from $674.4 million of revenue in 2012.
Net yield was up by 1% due to a combination of increased prices and onboard spend.
Kevin Sheehan, Norwegian’s chief executive, said the performance was particularly pleasing given the economic climate in its key market of Europe.
“Posting these great results, despite the challenging economic environment in Europe where we had a record deployment, is a testament to the discipline and rigor instilled at Norwegian to continuously improve quarter after quarter.
“Our results reflect strategic pricing programs, benefits from process improvements and other enhancement initiatives which resulted in a 9% improvement in operating income.”
Last week Norwegian announced it is to follow rival Royal Caribbean Cruise Line in reducing base commission for agents in the UK to 10% to try to combat retailer discounting.