Norwegian Cruise Line says 2021 bookings on track as ‘going concern’ threat appears to recede

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The Pride of America last anchored in March in Kailua Bay. (Chelsea Jensen/West Hawaii Today)
A tender makes it way from Kailua Pier to the Norwegian Cruise Line vessel Pride of America anchored in March in Kailua Bay. (Chelsea Jensen/West Hawaii Today)
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MIAMI — Norwegian Cruise Line Holdings Ltd. reported first-quarter earnings Thursday that missed analysts’ expectations. But the Miami-based company said it is already seeing demand for voyages in the fourth quarter of 2020 and into 2021.

Norwegian reported a net loss of $1.88 billion, or an adjusted loss of 99 cents per share, missing analysts’ expectations of a loss of $0.28 per share, Marketwatch reported. The loss compares with net income of $118.2 million, or 54 cents a share, in the same period a year ago.

Revenues for the quarter just ended fell 11.2% to $1.25 billion, narrowly missing analysts’ expectations of $1.28 billion.

In its earnings release, Norwegian touted having recently raised $2.4 billion in “oversubscribed” debt and equity offerings; it says its total cash position is now $3.7 billion — enough to cover a period of 18 months of suspended voyages, CEO Frank Del Rio said.

Notably, the company sees ongoing interest in cruises despite the ongoing pandemic — and the cruise industry’s missteps.

Specifically, Norwegian sees demand for cruise vacations beginning in the fourth quarter 2020 and accelerating through 2021, “with the Company’s overall booked position and pricing for 2021 within historical ranges.”

“Our guests continue to demonstrate their desire for cruise vacations, and we continue to experience demand for voyages further in the future across our three brands,” Del Rio said.

Norwegian shares were down more than 3% in a broader market sell-off, as the latest unemployment report came in worse than expected.