by Sarah Kuta
Last updated: 2:30 PM ET, Wed May 1, 2024
Despite record bookings in the first quarter, shares of Norwegian Cruise Line Holdings dropped on Wednesday after the cruise company’s quarterly revenue fell short of analysts’ expectations.
The company’s quarterly revenue jumped to $2.19 billion—up 20 percent from the first quarter of 2023—but missed revenue expectations of $2.24 billion.
Still, the company raised its annual profit forecast after beating its first-quarter profit estimates. Despite higher operating costs because of fuel, dry dock days, labor and raw materials, the company earned an adjusted profit of 16 cents per share, topping estimates of 11 cents per share, in the first quarter.
Total revenue per passenger cruise day increased 8 percent compared to the same period in 2023. Occupancy was 104.6 percent during the first quarter.
“We kicked off 2024 with impressive momentum, with record bookings in the first quarter propelling us to continue our all-time high booked position and an unprecedented level of advance ticket sales,” says Harry Sommer, president and chief executive officer of the company. “These achievements demonstrate the continued growing demand we are experiencing for our product and offering.”
Norwegian’s leaders are optimistic about the company’s future. Amid strong demand from travelers, the company announced last month that it had ordered eight new ships across its three brands. It’s also building a new pier at Great Stirrup Cay, its private island destination.
“By enhancing our capacity and elevating our product to create the best, largest and most efficient vessels in our fleet, we are honoring our 57-year history of innovation that has always driven our growth and continues to be at the forefront of what we do,” says Sommer.
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