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Norwegian Cruise Line Holdings (NCLH) today called the CDC’s Conditional Sailing Order “a step in the right direction on the path to the safer and healthier resumption of cruising in the U.S.” but said that “significant uncertainties remain regarding certain requirements” of the order.
In a statement on its third quarter earnings call, the company disclosed no timeframe regarding its preparations to sail in 2021, saying only that “average monthly cash burn is expected to increase as vessels are prepared to return to service due to additional costs associated with restaffing, repositioning and provisioning of vessels, implementation of new health and safety protocols and a disciplined ramp-up of demand-generating marketing investments.”
“While we have a long road of recovery ahead of us, we are encouraged by the continued demand for future cruise vacations, especially from our loyal past guests, across all three of our brands,” CEO Frank Del Rio said in a statement.
The company said demand is particularly strong for sailings in the second half of 2021 and that full year 2021 pricing is in line with prepandemic levels, even with “the dilutive impact of future cruise credits (FCC).
Bookings in the second half of the year are within historical range, “despite limited marketing efforts.”
NCLH cited record booking achievements in September and October, such as Oceania Cruises’ Labor Day upgrade sale, which was the most successful holiday promotion in the line’s history. It also noted Regent Seven Seas’ 2023 World Cruise booking record and “a new all-time-largest single booking day in Regent’s history” with the launch of its 2022-2023 itineraries.
The company said that as of Sept. 30, it had $1.2 billion of advance ticket sales, which includes approximately $850 million in FCCs. It said that since June 30 it had closed on a series of capital market transactions resulting in $1.5 billion of gross proceeds; extended workforce furloughs; extended a 20% salary reduction for all shoreside team members; continued significant reductions or deferrals of near-term marketing expenses, focusing them instead on the second half of 2021 and beyond.
“Our swift actions to adapt to this unprecedented environment by reducing costs, conserving cash and enhancing our liquidity profile will bolster our efforts to navigate through Covid-19, relaunch our vessels and, over the longer term, optimize our balance sheet and resume our consistent track record of strong financial performance,” said Mark Kempa, NCLH’s CFO.
NCLH lost $677.4 million during the third quarter, compared with revenues of $450.6 million in the prior year. Revenue decreased to $6.5 million, compared with $1.9 billion in 2019. The company’s shares surged 26% today on news that Pfizer’s vaccine may be “remarkably successful” at preventing Covid-19.
Source: travelweekly.com