(Reuters) – Norwegian Cruise Line Holdings beat fourth-quarter profit expectations on Thursday, driven by steady demand from leisure travelers and higher ticket fares.
Shares of the Oceania Cruises operator rose about 2% before the bell after it said consumer demand was strong for its offerings across itineraries and brands throughout 2025 and into 2026.
U.S. cruise operators, including Norwegian Cruise, Carnival, and Royal Caribbean, have experienced a surge in demand for sea-based vacations since the pandemic, leading to an increase in itinerary prices.
Advance ticket sales balance ended the fourth quarter at $3.2 billion for the company, roughly flat compared to the same period last year.
However, the Miami, Florida-based company’s annual profit forecast fell short of Wall Street expectations, indicating it expects high fuel prices and the costs of its capacity expansion to pressure earnings.
Norwegian Cruise has been trying to mitigate higher costs through measures including improving its supply chain efficiencies, which helped it swing from loss to profit in 2023.
For the quarter ended December 31, the company logged 26 cents in adjusted earnings per share, beating expectations of 11 cents.
Adjusted net cruise cost, excluding fuel per capacity day, was up 3.9% on a reported basis at $160 in the quarter, compared to $154 in 2023. That is projected to grow 1.25% in 2025 on a constant currency basis compared to 2024.
Overall revenue of $2.11 billion was in line with analysts’ expectations, according to data compiled by LSEG.
The cruise operator expects an adjusted profit of $2.05 per share for 2025, compared with analysts’ average estimate of $2.08, according to data compiled by LSEG.
(Reporting by Savyata Mishra in Bengaluru; Editing by Savio D’Souza and Tasim Zahid)
