Strong pricing and a strong product, plus capacity growth, will lead to a record 2023 financial performance from Norwegian Cruise Line Holdings, predicted Frank Del Rio, president and CEO.

“Where we sit today, and without another Black Swan event derailing our plans there is a reasonable and clear path to reach record net yields and record adjusted EBITDA levels in 2023,” he said, speaking on the company’s first quarter earnings call.

“Boosted by the introduction of four new ships across our three brands over the next 18 months, our goal, our entire team is focused on achieving. As just mentioned, the key components of the future success will be our industry leading growth profile with nine new ships coming online across our three brands through 2027.”

Those new ships joining over 2022 and 2023 include the Norwegian Prima and Viva, the Regent Seven Seas Grandeur and Oceania Vista.

CFO Mark Kempa said that building occupancy rates would continue along with high ticket pricing.

“Looking ahead, load factors are also improving sequentially each month and we expect second quarter load factors to come in at approximately 65 percent,” he said.

“This will continue to build throughout the year and we expect to reach historical load factor levels in the first half of 2023, and at record pricing, staying consistent with our go-to-market strategy and protecting the long-term pricing strength of our brands.”

With a booked position ahead of 2021, Del Rio said that the new tonnage should continue to drive the business.

“We were in a way lucky that we didn’t take delivery of any new ships during the pandemic, but over the next 18 months, we take delivery of four. And so we think like we’ve seen historically, new ship introductions are real tailwind to net yield growth to profitability, the topline revenue,” he said.

“Inflation is an ugly word, but there is a pretty side, which is pricing power … So we think that in the absence of more Black Swan events, and we’ve had more Black Swan events in the last two years, than I think we’ve had in the prior 20. 2023, indeed, it could be the record year that we’re seeing unfolding before us.”