Port Everglades

Norwegian: Earnings Could Grow 60 Percent

On its third quarter earnings call, Kevin Sheehan, president and CEO of Norwegian Cruise Line, said earnings could grow 60 percent in the coming year based on a number of factors.

Coming out of the economic downturn Sheehan explained a big focus at Norwegian had been the booking curve.

Sheehan said the goal was to build advanced bookings, and that trend was continuing in the right direction year-over-year.

For the first quarter 2014 bookings, Sheehan described bookings as solid.

“For the first quarter we are booked a little bit behind and it’s a conscious decision … it’s a balance,” he said, comparing demand to pricing. However, the rest of the year is on target or already ahead, Sheehan added.

“We are solidly priced in the first quarter of 2014, I would say the pricing is above the mid single digits. We want to continue to push on pricing and keep a careful eye on cost.”

The Caribbean is currently providing Norwegian a solid pricing environment, Sheehan continued. Furthermore, consistent tonnage and deployment in other markets, such as Europe, has helped demand.

Driving earnings and growth is the new Norwegian Breakaway, which is delivering premium ticket pricing and strong onboard spending, with increased fuel efficiencies said Sheehan, and the new Getaway is expected to do the same.

As for building up Caribbean capacity, Sheehan noted that the Pearl was mostly chartered out for the first quarter, thus not cutting into Getaway bookings.

In addition, projects like adding more staterooms on the Pride of America have enriched returns on Norwegian’s existing fleet.

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