by Donald Wood
Last updated: 2:42 PM ET, Wed November 3, 2021
Norwegian Cruise Line Holdings announced Wednesday it forecasts a return to profitability in the second half of 2022.
According to Reuters.com, Norwegian officials reported its brands experienced an occupancy rate of 57.4 percent in the third quarter, with experts forecasting occupancy returning to normal levels in the latter half of 2022 when the company's full fleet returns to service.
Norwegian also revealed that next year's overall cumulative bookings were in line with pre-pandemic record levels despite the Delta variant of the coronavirus hurting bookings for the fourth quarter and early 2022.
The cruise company also expects monthly average cash burn to be an estimated $350 million for the fourth quarter, an increase from the $275 million in the third quarter, mainly attributed to preparing ships for sailings again.
Norwegian's total revenue of $153.1 million missed estimates of $198.4 million.
Last week, the Royal Caribbean Group also revealed it did not meet its estimates for quarterly revenue, but pent-up demand and growing expendable income has analysts optimistic for 2022 and beyond.
Royal Caribbean's total revenue finished at an estimated $457 million in the third quarter as compared to the previous analyst estimate of $567 million. The cruise company recorded a negative revenue of $33.7 million a year due to refunds and cancellations.
While the numbers missed the mark, officials said coronavirus vaccine requirements and stringent testing protocols have resulted in booking volumes improving, with 2022 sailings being booked "within historical ranges and pricing remains strong throughout the year."
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