Norwegian Cruise Outlook Cut Exposes Fuel Squeeze and Booking Gap
Norwegian Cruise Line Holdings slashed its full-year profit outlook, warning investors of a tougher year as higher fuel costs and sluggish bookings in Europe disrupt its recovery. The Miami-based company now sees adjusted earnings per share for the year coming in between $1.45 and $1.79—a significant pullback from the previous $2.38 forecast, and a deeper cut than rivals have signaled. The cut stands out because, frankly, Q1 wasn’t the issue here. Revenue climbed 10% to $2.3 billion, and adjusted earnings actually topped the company’s forecast. Adjusted EBITDA also moved up 18% to $533 million. What’s getting investors’ attention now? The booking gap, higher fuel costs, and management’s flag about softening summer demand, with Europe looking especially shaky.