Norwegian Cruise Line Holdings’ bookings for next year have equalled record 2019 pre-pandemic levels.
The company reported positive booking trends for 2023 even with increased capacity across its brands.
Pricing was described as being “significantly higher” than at the same point in 2019 for the coming year.
“Net booking volumes continue to be at the pace needed to reach historical load factor levels in 2023,” the company added.
NCLH’s adjusted profit [ebitda] for the peak summer three months to September 30 came in at $28 million as the group projected a return to annual profits in 2023.
The upbeat projections lifted shares of the big three major cruise groups quoted on the New York Stock Exchange.
The balance of advanced ticket sales at NCLH hit $2.5 billion at the end of the quarter.
This included $260 million of future cruise credits, equivalent to 10% of the total deposit balance.
About 60% of outstanding future cruise credits have been applied to future sailings.
Growth in advance ticket sales of $1.5 billion during the three months was in line with the previous quarter.
The owner of Norwegian Cruise Line, Regent Seven Seas Cruises and Oceania Cruises expects quarterly occupancy levels to increase and reach historical levels for the second quarter of 2023.
This summer’s quarter saw strong ticket pricing and on board revenue resulting in a 14% rise in revenue per passenger cruise day despite the impact of Russia’s war in Ukraine on premium-priced Baltic itineraries. the company reported a 17 point rise in occupancy levels to 82%.
Quarterly revenue increased to $1.6 billion compared to $153.1 million in the same period last year due to the phased ramp up of cruises. The adjusted net loss was cut to $268 million from $801 million, despite costs rising due to the continued resumption of sailings and continued Covid-19-related expenses, including testing.
Norwegian Cruise Line eliminated Covid-19 testing, masking and vaccination rules on October 4 after the introduction of new ship Norwegian Prima in August.
NCLH president and chief executive Frank del Rio said: “We are demonstrating continued positive momentum as we consistently reach key operational and financial milestones, including positive adjusted ebitda in the third quarter for the first time since the start of the pandemic.
“The underlying fundamentals of our business and our target upmarket consumer remain strong and our strategy of focusing on maximising long-term, sustainable profitability is working as intended, evidenced by our 2023 booked position which is equal to 2019’s record levels and at record pricing.
“We believe we are uniquely positioned within the cruise space to unlock value for our stakeholders given our dominance as the leading operator in upscale experiences, our sizeable yet nimble 29-ship fleet, our industry-best growth profile and our differentiated go-to-market strategy of market-to-fill and value-add bundling.”
But NCLH added: “As a result of the Covid-19 pandemic, the effects of the Russia-Ukraine conflict and current macroeconomic conditions, while the company cannot estimate the impact on its business, financial condition or near- or longer-term financial or operational results with certainty, it will report a net loss for the fourth quarter of 2022.”
Chief financial officer Mark Kempa said: “We are on track to generate positive adjusted free cash flow in the fourth quarter as we continue to march towards our expected return to historical occupancy levels beginning in the second quarter of 2023.
“We are proactively working to further enhance our financial flexibility and liquidity, including the amendment and extension of our operating credit facility which we expect to complete by year-end.
“We believe our ongoing cash generation, buoyed by our attractive new-build growth pipeline, provides a path to meet our near-term liquidity needs and restore our balance sheet over time.”