Posted By Jessica Weisman-Pitts
Posted on October 31, 2024
(Reuters) – Norwegian Cruise Line Holdings on Thursday raised its annual profit forecast for a fourth time this year, encouraged by record third-quarter revenue and advance ticket sales.
Cruise operators marked robust demand this quarter for their vacation experiences as consumer spending in the U.S. increased at its fastest pace in 1-1/2 years and inflation slowed sharply.
Norwegian Cruise’s quarterly revenue increased 11% year-over-year to a record $2.81 billion.
The Oceania Cruises operator said its advance ticket sales balance ended the third quarter at $3.3 billion, a quarterly record high and about 6% higher than the same period in 2023.
It now expects an adjusted profit of $1.65 per share for fiscal 2024, compared with its previous forecast of $1.53.
“Fueled by robust demand … we’re raising our full-year guidance for a fourth time and expect 2024 to be our best year for revenue,” said CEO Harry Sommer.
Shares of the company, which have gained 19% this year, were up nearly 2% in premarket trading.
The company also raised its 2024 revenue-per-cruise-day forecast to about 9.4%, from its prior outlook of 8.2%, driven by demand across all three brands and itineraries in the second half of the year.
Rival Royal Caribbean also lifted its annual profit forecast on Tuesday for the fourth time this year, benefiting from robust demand.
(Reporting by Savyata Mishra in Bengaluru and Doyinsola Oladipo in New York; Editing by Devika Syamnath)
