Steady Demand and Price Hikes Drive Norwegian Cruise to Increase Annual Profit Forecast

Norwegian Cruise Line Holdings Ltd (NCLH.N) has increased its annual profit forecast, citing rising prices and steady demand from affluent customers. With the relaxation of COVID-19 protocols, more people, particularly from the higher income group, are opting for leisure travel and spending more on various onboard facilities such as spas and casinos.

Norwegian has raised ticket prices to offset the impact of higher fuel and food costs due to supply chain disruptions resulting from the Russia-Ukraine crisis. The company reported first-quarter occupancy at 101.5%, up from the previous quarter’s 86.6%. Norwegian now expects an adjusted profit of 75 cents per share for the year, up from its earlier projection of about 70 cents per share. The company’s shares were up approximately 1% in premarket trading.