By Savyata Mishra
(Reuters) – Norwegian Cruise Line Holdings beat fourth-quarter profit expectations on Thursday, driven by steady demand from leisure travelers and higher ticket fares.
U.S. cruise operators, including Norwegian Cruise, Carnival Corp , and Royal Caribbean, have experienced a surge in demand for sea-based vacations since the pandemic, leading to an increase in itinerary prices.
Norwegian Cruise CEO Harry Sommer flagged robust demand for its offerings across itineraries and brands throughout 2025 and into 2026, adding that demand for summer sailing in Europe and Alaska was “impressive”.
The industry has also been helped by a surge in onboard spending, as customers pre-booked for services such as drinks packages, dining experiences, spa treatments, and shore excursions.
Norwegian Cruise posted a 7.2% rise in onboard and other revenue during the quarter and said it is fully booked for the next 12 months.
However, shares of the Oceania Cruises owner fell about 6% in choppy trading on Thursday as the company forecast annual profit below analysts’ expectations. The stock rose 28% in 2024.
The cruise operator expects an adjusted profit of $2.05 per share for 2025, compared with an estimate of $2.08, according to data compiled by LSEG.
Norwegian Cruise has focused on cost-control measures over the last few years including improving its supply chain efficiencies to reduce its debt and mitigate higher costs from fuel prices and capacity expansion.
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 with 2024.
For the quarter ended December 31, the company logged 26 cents in adjusted earnings per share, beating expectations of 11 cents.
Overall revenue of $2.11 billion was in line with analysts’ expectations, according to data compiled by LSEG.
(Reporting by Savyata Mishra in Bengaluru; Editing by Savio D’Souza and Tasim Zahid)
