This article is from: srnnews.com
March 2 (Reuters) – Norwegian Cruise Line Holdings forecast annual profit below Wall Street expectations on Monday as steep costs offset robust demand for its higher-priced voyages.
Shares of the company, as well as peers Carnival Corp and Royal Caribbean, were down about 7% in premarket trading, tracking a slump in the broader market due to the escalating conflict between the U.S., Israel and Iran.
Norwegian Cruise is facing a slowdown in new bookings as budget-conscious customers avoid splurging on expensive cruise vacations amid persistent inflation and tariff-driven uncertainty in the U.S.
Increased fuel costs amid escalating global tensions, including in the Middle East, and expenses related to drydocks, ship deliveries and maintenance are also weighing on the cruise operator’s margins.
The cruise operator now expects adjusted profit of $2.38 per share for fiscal 2026, compared with analysts’ expectation of $2.55 per share, according to data compiled by LSEG.
Norwegian reported fourth-quarter revenue of $2.24 billion, compared with analysts’ expectation of $2.35 billion.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Leroy Leo)
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