Norwegian Cruise Line Holdings’ boss aims to ramp up occupancy “in a disciplined manner” and exceed historical net yield levels by 2023.
President and chief executive Frank Del Rio outlined the plan as NCLH – which operates Norwegian Cruise Line (NCL), Oceania Cruises and Regent Seven Seas Cruises – announced a net loss of $1 billion during the first quarter of 2022, compared with a loss of $1.4 billion in the same period last year.
The company’s total debt position was $13.6 billion, with around $3.1 billion in liquidity.
More: NCL ‘on track for record year’ in UK
NCLH’s monthly cash burn rate for the first three months of 2022 was around $375 million, below its estimate of $390 million.
NCL vessel Norwegian Spirit became the final ship in the firm’s 28-ship fleet to resume operations, with a 12-day sailing from Papeete, Tahiti, last week.
Del Rio said: “Last week we reached the biggest milestone yet in our ‘Great Cruise Comeback’ as Norwegian Spirit, the last ship in our fleet to resume sailing, welcomed guests on board in Papeete.
“The herculean effort to restart our fleet would not have been possible without the incredible fortitude of the entire Norwegian team and the unwavering support of our key partners and stakeholders around the world.”
He added: “Looking ahead, our strategy is to ramp-up occupancy in a disciplined manner with the goal of exceeding historical net yield levels for full year 2023 while maintaining the high guest satisfaction scores and strong onboard revenue generation we are currently experiencing.”
Del Rio said he was “encouraged” consumer demand remains “robust” with net booking volumes back to “pre-Omicron levels” and approaching “historical levels despite a temporary retreat due to the Russia-Ukraine conflict”.
“Pricing remains very strong for all future periods and our value-add bundling strategy is working better than ever,” he explained.
Despite booking volumes returning, NCLH was forced to cancel or change around 60 sailings across the three fleets due to itineraries featuring Russian ports of call.
NCL ship Norwegian Getaway was redeployed to Port Canaveral, Florida; Oceania Cruises’ Marina vessel has moved to the British Isles; and Regent’s Seven Seas Splendor will operate sailings in northern Europe.
The company has also removed all calls to Russian ports from 2023 itineraries.
As of March 31, 2022, NCLH’s forward bookings balance sheet increased by $418 million during the last quarter. However, around $600 – or 27% – were Future Cruise Credits (FCCs).
Gross advance ticket sales were at their highest level since the start of the pandemic at around $1.1 billion during the quarter.
Cruise operating expenses increased by 266.1% this year versus the same period in 2021 “primarily due to the resumption of cruise voyages”, NCLH added.
“This increase in 2022 reflects higher payroll, fuel, and direct variable costs of fully operating ships,” NCLH commented.
“Cost for certain items such as food, fuel and logistics also increased due to inflation. Additionally, in 2022, there was an increase in repair and maintenance costs, including planned dry-docks.”
Last month, Oceania Cruises announced plans to revamp its Marina and Riviera ships over the next 18 months.