Cruise

Norwegian confident of withstanding “scenario of prolonged voyage suspensions” despite $997m loss

Huntley Mitchell

Huntley Mitchell

The boss of Norwegian Cruise Line Holdings remains upbeat about the future of the cruise company, which swung to a big loss in the second quarter of 2020.

Norwegian posted a net loss of US$715.2 million ($997 million) in the three months to 30 June, compared to US$240.2 million ($334.9 million) profit in the prior corresponding quarter.

Revenue for the cruise giant was US$16.9 million ($23.6 million) compared to US$1.7 billion ($2.4 billion) in 2019 due to the complete suspension of voyages in the second quarter amid the COVID-19 pandemic.

Norwegian’s total cruise operating expenses fell 68.5 per cent in Q2 of 2020 compared to the second quarter of 2019, and were primarily related to the continued payment of protected commissions as additional sailings were cancelled, crew costs and fuel.

However, despite the negative quarterly financials, the company successfully raised US$1.5 billion ($2.1 billion) in capital last month in response to the coronavirus crisis.

president and CEO Frank Del Rio said this capital raising positions Norwegian to “withstand a scenario of prolonged voyage suspensions”.

“Our guests continue to demonstrate their desire for cruise vacations in the future,” he said.

Del Rio also noted the “significant progress” in the company’s ‘Roadmap to Relaunch’ with the formation of a Healthy Sail Panel with rival Royal Caribbean.


Featured image source: iStock/Marina113

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