© Reuters. The Norwegian Pearl cruise ship is seen docked at Miami port, after Norwegian Cruise Line Holdings Ltd cancelled sailings amid rising fears of Omicron-related coronavirus infections, in Miami, Florida, U.S. January 5, 2022. REUTERS/Marco Bello/File photo
(Reuters) -Norwegian Cruise Line Holdings forecast third-quarter profit below estimates on Tuesday, as higher fuel costs reverse its gains from pent-up demand for cruise bookings and raised ticket prices.
Shares of the company, which appointed a new CEO in March, were down 7.2% in premarket trading. They have risen more than 80% this year.
Cruise operators have been wrestling with elevated costs associated with food, raw materials, fuel, a stronger U.S. dollar and labor due to the pandemic that were exacerbated by the Russia-Ukraine war.
Despite the cruise company undertaking price hikes, it could not protect margins from the challenges and spiraling marketing expenses, which have also eroded the benefits of a recent resurgence in demand from affluent customers for leisure travel.
The company expects third-quarter adjusted profit of 70 cents per share, compared with analysts’ average estimate of 79 cents, according to data from Refinitiv.
However, the cruise operator expects full-year adjusted profit of 80 cents per share, compared with its earlier forecast of 75 cents.
