— Norwegian Cruise Line Holdings Ltd. diverged from its industry counterparts by cautioning that the demand for cruises, which had previously bucked concerning travel patterns, is starting to decline.
The cruise operator observed “a softening” in its bookings for the next 12 months; however, they assert that ticket sales remain within the “ideal range,” even with continued economic instability, as stated on Wednesday. Nonetheless, the firm upheld its annual goals.
“Although we acknowledge possible challenges with revenue growth, we feel confident that these can be adequately mitigated through the ongoing implementation of our cost reduction strategies,” stated CEO Harry Sommer in the release.
The stock price fell by up to 20 percent during early morning trade.
In recent weeks, almost every
major US airline
has withdrawn or failed to reaffirm its full-year outlook this reporting season as volatile US trade policies spurred lower consumer confidence and blunted travel demand.
Norwegian’s perspective on the demand situation differed from its bigger competitor, Royal Caribbean Cruises Ltd., which stated yesterday that they are
still experiencing
strong booking and on-board spending. Last month, Carnival Corp. also gave an upbeat outlook. Both raised their full-year targets.
The cruise company also announced that their first-quarter sales and profits fell short of what analysts had anticipated.
The Miami-based Norwegian cruise line saw a decline of 32% this year as of the close on Tuesday, making it the biggest loser among cruise stocks and over six times the drop experienced by the S&P 500 index during the same period.
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