The passenger cruise ship Norwegian Prima arrives on the French Mediterranean port of Marseille. (Photo by Gerard Bottino/SOPA Images/LightRocket via Getty Images)
Gerard Bottino | Lightrocket | Getty Images
Norwegian Cruise Line Holdings on Wednesday said it could cancel its stops in Israel this yr and into 2024, as that country’s war with militant group Hamas continues to escalate.
The corporate slashed its full-year outlook, also citing the wildfires in Maui, Hawaii. Norwegian said it now expects adjusted per-share earnings of 73 cents for the yr, compared with its prior forecast of 80 cents.
Shares of the corporate fell greater than 3% on Wednesday.
The Israel conflict has also impacted broader cruises to the Middle East area beyond just its Israel stops, the corporate said on its earnings call. Last week, rival cruise line Royal Caribbean Group said canceled sailings to Israel will negatively impact its earnings for the yr by 3 cents a share.
Norwegian stays optimistic that the Israel conflict will likely be short term, company executives said on the earnings call, so the corporate is bullish concerning the ability to return to the Middle East soon.
“Considered one of the most important strengths and differentiators in our industry is our ability to reposition our assets, which is what we have done with the heightened tensions within the Middle East,” CEO Harry Sommer said on the decision. “The protection and well-being of our guests and crew members are certainly our primary priority.”
The cruise company also the wildfires in Maui forced Norwegian to switch some August itineraries. Though regular stops resumed in September, the corporate said it experienced a slowdown in bookings – which has since improved to almost normal levels – concentrated within the fourth quarter.
The corporate lowered its 2023 occupancy outlook to 102.6% from 103.5%, citing the disruptions affecting fourth-quarter performance.