Norwegian announces jump in net income

A combination of cost-cutting and higher onboard spending pushed Norwegian Cruise Lines' income up 19% for the third quarter of the year to the end of September.


Net income for the Miami-based operator jumped to $128m, despite a 13.5% increase in the cost of fuel. The cruise line said it was able to reduce its cost per capacity day by 3.3% due in part to the timing of maintenance and repair costs and lower operating expenses on ships.


Net yields, or the revenue per capacity day, increased 1% due to higher ticket prices and onboard spending.


President and CEO Kevin Sheehan said business was expected to be good next year, when the cruise line will add a new 4,000 passenger ship, the Norwegian Breakaway, to be based in New York. Forward bookings for "Breakaway" have been "encouraging", he said. However, Sheehan said it was too early to say how storm Sandy, which battered the east coast of America earlier this week, would affect the business.

Thursday, November 1, 2012

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