NCL parent Norwegian Cruise Line Holdings has predicted a return to adjusted profit in the second half of 2022 after its full fleet returns to service early in the second quarter.
The company, which also operates the Oceania Cruises and Regent Seven Seas Cruises brands, is currently operating 16 of its 28 ships, representing 70% of its capacity.
In a business update on Tuesday, it said it would report a net loss for the year to December 31 and expected to continue to report net losses until it is able to resume regular voyages.
It added: “As a result of Omicron variant-related impacts to operations in the first quarter of 2022, we now expect net cash provided by operating activities to be positive during the second quarter of 2022.
“Despite the impact of the Omicron variant on the booking environment, and based on our current projections and market and public health conditions, we expect to have positive adjusted net income for the second half of 2022.”
The company defines adjusted net income as “net income, adjusted for non-cash compensation expense and any potential impacts associated with financing activities”.
The NCLH update detailed the impact of the Omicron variant on business, with weekly growth in bookings during the fourth quarter of 2021 temporarily halted before returning in recent weeks.
The company said the Omicron hiatus meant its booked position for the first half of 2022 was below the “extraordinarily strong levels of 2019”, although the second half of the year remains in line with the comparable period three years ago.
Pricing for both halves of this year remains higher than in 2019 despite the impact of future cruise credits, it added, while “meaningfully higher” forward bookings and pricing for 2023 demonstrated “continued strong demand for sailings in the medium and longer term”.
Monthly average cash burn for the fourth quarter of 2021 was approximately $345 million, slightly lower than the company’s prior estimate of $350 million for the quarter.
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