Norwegian Cruise Line Holdings (NCLH) expects to be in a “cash flow positive” position during the first quarter of 2022.
Speaking on second quarter results call on Friday as NCLH reported a net loss of $717.8 million for the three months up to June 30, executive vice president and chief financial officer Mark Kempa said he expects to reach a “crucial inflection point” early next year when operating cash flow would turn positive.
The results came ahead of the company winning backing from a US judge granting a preliminary injunction in a 56-page ruling to pave the way for NCLH’s three brands to require documentation confirming a passenger’s vaccination status prior to boarding.
A spokesperson said: “This order will now allow the company to operate in the safest way possible with 100% vaccination of all guests and crew when sailing from Florida ports.
“Nothing takes priority over the health and safety of the company’s guests, crew and the communities visited and our commitment to them is paramount. The company’s first sailing from Florida is scheduled on August 15 on Norwegian Gem departing from Miami.”
Kempa, reviewing the quarterly financial results, said: “We’ve been very disciplined and very methodical. We said we’re not interested in being the first in the race to launch our vessels.
“We think we have a very measured and disciplined plan with approximately 75% to 80% of our fleet in operation by the year end. As a result of this, when we look at our cash flow, we expect to be cash flow positive sometime of the first quarter of 2022.
“To put that into perspective that’s only five to six months away. We’re very pleased with the booking trends that we’ve seen.”
More: NCLH reports ‘unparalleled’ pent-up demand despite Q2 losses
NCL reports record bookings after Prima unveiling
President and chief executive Frank Del Rio highlighted how incoming Norwegian Cruise Line vessel Norwegian Prima, due to launch in August 2022, had appealed to customers.
On 2022 booking levels, Del Rio added: “Pent-up demand for future cruise vacations, especially for 2022 sailings are very strong. We’ve experienced record breaking demand for future cruise vacations across all three of our brands.
“When you look at our booking curve at the same point in time versus two and three years ago, we’re now booked nine to 10 weeks ahead of those levels.
“Pricing is also higher than 2019’s record level – even when you include the diluted effect of future cruise credits.”
Norwegian Prima (pictured), the first of six Prima-class ships for NCL, is due to be launched next summer.
Del Rio said the ship would offer “the most outdoor deck space” of any new cruise vessel in the fleet and would take NCL’s ‘ship-within-a-ship’ concept – The Haven – to “the next level”.
“Importantly, however, [Prima] is resonating with guests like no other ship launch we’ve seen before,” Del Rio added. “[Prima’s] sales debut in May was the single best booking day and best initial booking week record – doubling the previous record seen by Norwegian Bliss in 2018.”
Del Rio also added that Prima prices are “approximately 20% higher” than Bliss.