Norwegian posts improved third-quarter profits

Buoyed by the performance of its newest ship, Norwegian Cruise Line Holdings reported higher revenues and profits for the third quarter Monday afternoon.

The positive earnings report provided more good news for the cruise industry, which has faced rough waters since early last year. Last week, Royal Caribbean Cruises Ltd. posted results for the quarter that were better than expected.

Norwegian, with a fleet of 12 ships, reported revenue of nearly $798 million, an 18 percent increase over the third quarter of 2012. Net income increased more than 33 percent to nearly $171 million.

Net yields, or the net revenue per capacity day, increased 4.1 percent thanks to higher cruise fares and increased passenger spending on board.

Capacity days increased by nearly 15 percent compared to the previous year with the addition of the 4,028-passenger Norwegian Breakaway, which launched in May. Sister ship Norwegian Getaway starts sailing year-round from Miami in February.

Kevin Sheehan, president and CEO of Miami-based Norwegian Cruise Line, called the results “fantastic.”

“I think Breakaway had a very solid quarter,” he said. “On top of that, we were very pleased with all of the other ships.”

The company exceeded expectations in Europe, where four ships were based for the summer, Sheehan said. Because of economic instability in the region, cruise operators have struggled to command strong prices for Mediterranean sailings in recent years.

Worldwide, the industry has struggled following a series of high-profile incidents that cast cruising in a negative light. The Costa Concordia wrecked off the coast of Italy in January 2012, killing 32. And earlier this year, fire disabled the Carnival Triumph in the Gulf of Mexico, leaving passengers in uncomfortable conditions for several well-publicized days. A less serious fire followed on Royal Caribbean International’s Grandeur of the Seas in May. Where demand dropped amid negative coverage, industry players were forced to lower prices in order to fill ships.

“The good thing is that our pricing today is above where it was before the economic downturn,” Sheehan said. “And we’re very focused on continuing to ratchet up our pricing level.”

Read more Tourism & Cruises stories from the Miami Herald

Miami Herald

Join the

The Miami Herald is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere on the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

The Miami Herald uses Facebook's commenting system. You need to log in with a Facebook account in order to comment. If you have questions about commenting with your Facebook account, click here.

Have a news tip? You can send it anonymously. Click here to send us your tip - or - consider joining the Public Insight Network and become a source for The Miami Herald and el Nuevo Herald.

Hide Comments

This affects comments on all stories.

Cancel OK

  • Marketplace

Today's Circulars

  • Quick Job Search

Enter Keyword(s) Enter City Select a State Select a Category