NCL Holdings Loses 1 billion in the first quarter!

CEO Del Rio says this could be a record year for pricing if there are no more Black Swan events.

During his company's first-quarter earnings call yesterday, Norwegian Cruise Line Holdings CEO Frank Del Rio told investors that the company could see record pricing in 2022, barring any more Black Swan events such as the pandemic and the war in Ukraine.

Del Rio said, "Looking ahead, our strategy is to ramp up occupancy in a disciplined manner with the goal of exceeding historical Net Yield levels for the full year 2023 while maintaining the high guest satisfaction scores and strong onboard revenue generation we are currently experiencing."

"We are encouraged that consumer demand remains robust with net booking volumes not only back to pre-Omicron levels but now 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."

During the call, the company reported the following financial results for the First Quarter.

GAAP net loss was $(1.0) billion or EPS of $(2.35) compared to net loss of $(1.4) billion or EPS of $(4.16) in the prior year. The company reported Adjusted Net Loss of $(760.5) million or Adjusted EPS of $(1.82) in 2022. This compares to Adjusted Net Loss and Adjusted EPS of $(668.6) million and $(2.03), respectively, in 2021.

Revenue increased to $521.9 million compared to $3.1 million in 2021 due to the resumption of cruise voyages.

Total cruise operating expense increased 266.1% in 2022 compared to 2021, primarily due to the resumption of cruise voyages. The increase in 2022 reflects higher payroll, fuel, and direct variable costs of fully operating ships.

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.