Norwegian Cruise projects revenue hit from coronavirus

Norwegian Cruise Line (NCL) has canceled its voyages in Asia through the third quarter of this year and it projects its earnings to suffer as the coronavirus has affected bookings for its voyages.

The cruise line has cancelled or modified 40 voyages that were planned to disembark in ports across the Asia region as the coronavirus has continued to spread, chief executive Frank Del Rio said today on an earnings call. It has redirected 21 Asia voyages to the eastern Mediterranean for this summer and has cancelled 10 other planned trips.

The Miami-based company also projects to take a 75¢/per share hit to its projected earnings as a result of the virus and it no longer expects to achieve its previously projected earnings per share between $5.40 and $5.60 this year, Del Rio said.

It is too early to tell the full extent of the virus' impact to NCL given its unknown duration and the severity of the virus outbreak, the chief executive said.

This projection follows that of competing cruise operator Royal Caribbean, which also expects the virus to cut into its short-term revenue. Royal Caribbean has also cancelled eight cruise voyages out of China through 4 March and modified other trips as well.

NCL spent $409.6mn on fuel in 2019, a 4.3pc increased compared with 2018. Its profit declined by 2.5pc to $930.2mn last year.

By Luis Gronda