Norwegian Cruise Line has warned the coronavirus will affect 2020 earnings despite a strong start to the year.
NCL said it had entered 2020 “with a record booked position and at higher pricing” until mid-February. However, customer compensation and 40 cancelled, modified or redeployed Asia voyages will costs investors around 75 cents a share, it said.
The brand has cancelled 21 Asia voyages on Norwegian Spirit, which has been moved to the eastern Mediterranean this summer “with an extremely condensed booking window”.
NCL said prior to the outbreak, “the company was on a solid trajectory to achieve financial targets but admitted: “The company does not anticipate achieving these targets by year-end.”
NCL made $930.2 million in 2019, compared to $954.8 million the previous year. Adjusted net income was $1.1 billion, taking into account the cessation of sailings to Cuba following the ban on US visitors and the effects of Hurricane Dorian.
The year included the introduction of Norwegian Encore, the final Breakaway Plus Class ship, and the repositioning of Norwegian Joy from China to the North American market.
NCL joined rivals in warning about the coronavirus effects. Carnival Corporation, which operates Princess Cruises, whose Diamond Princess ship has been in quarantine in Japan, said it was “currently unable to determine the full financial impact”.
Royal Caribbean, which has cancelled 18 itineraries in Asia, warned travel restrictions and concerns “could materially impact the company’s overall financial performance”.