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Cruise ship companies are still paying for COVID interrupting their business

People are cruising again on big ships following a COVID-19 decline, but it's a tough comeback for the industry.

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Help! Our Cruise Operator Went Bankrupt and We Are Out $17,905.

A couple purchased an Arabian Sea voyage, but Vantage, the cruise company, went under. Their travel insurance was supposed to cover financial default, but the claim was repeatedly denied.

An illustration of a dollar bill folded up to resemble a boat sinking in a whirlpool in a sea of green.

By Seth Kugel

Dear Tripped Up,

In September 2022, I booked a 17-day Arabian Sea cruise through Vantage Travel Services to celebrate my 80th birthday with my wife. The cruise was to set sail in October 2023. I used my credit card to leave a $2,000 deposit and paid the remaining $17,905 shortly afterward by bank transfer. I also bought the Worldwide Trip Protector plan from Travel Insured International (for $1,954), in part because it covered financial default and bankruptcy of cruise lines. Vantage then canceled the cruise and offered me an alternative date I could not make; I also declined their offer of credit and asked for a refund, which they agreed to. But no refund ever came, and they stopped answering the phone. My credit card returned the $2,000, and I filed an insurance claim for $17,905. It was denied, as was my first appeal. Then Vantage filed for bankruptcy, and my second appeal was denied too. The reasons given by the insurer were outrageous. They cited a vague parenthetical phrase in the policy’s bankruptcy clause, claiming I wasn’t covered because I purchased the cruise directly from the cruise line (rather than, say, through a travel adviser). Then they said my policy lapsed when I canceled the trip. But I did not cancel; Vantage did. I also filed a complaint with the New York State Department of Financial Services, which was rejected. Can you help? Michael, Smithtown, N.Y.

Dear Michael,

When Boston-based Vantage filed for bankruptcy last year, it owed thousands of customers a total of $108 million for cruises and other travel products they had paid for but never received. The company’s former owner is facing lawsuits in New York and Pennsylvania. But you had purchased an insurance policy to cover just such a risk, a smart move. Or so you thought until the insurance company, Travel Insured International, denied your claim and then used exasperating logic to fend off your two appeals, first interpreting the policy’s financial default and bankruptcy clause in a maddening way and then twisting the meaning of the word “cancel.”

You made a few mistakes as well — most notably, by making a claim based on a financial default that had not yet happened. But after speaking with law professors, insurance experts and competing insurance companies, I believe Travel Insured International was wrong, at least by the time of your second appeal, and should pay up.

What does it have to say for itself? For nearly five months, Travel Insured International and its parent company, Crum & Forster, did not respond to my detailed inquiries. Days before publication, however, a spokeswoman, Amy Whilldin, sent the following statement:

“The claim was properly considered, and the correct determination was made based on the facts of this claim, which was to the satisfaction of both the New York Department of Financial Services and the New York State attorney general.”

Ms. Whilldin is correct about the state’s financial services department . An examiner with the department, which regulates the insurance industry, rejected your complaint. “After a review of the policy language," he wrote, “we do not find they are acting in an arbitrary or capricious manner,” referring to Travel Insured International. I disagree with that determination, as we are about to get into.

But the attorney general’s office was not satisfied. You had complained to its Department of Consumer Frauds and Protection, and they did not receive a response from the company. “Despite our repeated efforts,” an employee wrote, “they have failed to respond.” The letter goes on to recommend you consider suing the company.

I have a better idea. You should file a formal grievance with Travel Insured International, which under your policy allows you to submit new evidence, and if that fails even argue your case in person. (You told me you are not interested in a third option, to accept travel credits under the conditions offered by the Australian company that bought Vantage’s assets.)

In the meantime, your story provides great lessons on how travelers should choose the appropriate travel insurance policy, and what can go wrong even when they do.

In your initial claim to Travel Insured International, filed in late 2022, you cited Vantage’s “very poor record” in refunding its customers and your “assumption that the company is in default in making payments.”

This was an error: Your policy defines financial default as “the total cessation of operations,” and Vantage at the time was running at least some cruises. Travel Insured International’s response simply said that “your travel supplier canceling your trip is not a covered reason.” True.

When you first appealed in April, Vantage was two months short of declaring bankruptcy outright, and was not yet in financial default as defined by the policy. But it was teetering. (That one of its cruises left at all made headlines in The Boston Globe .) This time, Travel Insured International denied your claim, citing the bankruptcy clause, which protects policy holders in case of “Bankruptcy or default of an airline, cruise line, tour operator or other travel provider (other than the Travel Supplier, tour operator, travel agency, organization or firm from whom you purchased your travel arrangements).”

That parenthetical says you are not covered if the organization that sold you the cruise goes bankrupt. You purchased the cruise directly from Vantage, so you are not covered, according to the claims adjuster’s reasoning. (Why the company even cited this clause, if the cruise line was not yet in default, remains a mystery.)

Similar clauses appear in many travel policies, but that’s not what they’re supposed to mean, said Loretta Worters, vice president for media relations at the Insurance Information Institute , an industry group.

Such provisions, she explained, are intended to exclude coverage for an unscrupulous or financially flailing middleman that goes belly-up after collecting your money but before passing it along to the actual travel provider.

“Some of these are fly-by-night, travel-agencies-in-their-kitchen kinds of things,” Ms. Worters said. ( We encountered one such agency in a previous Tripped Up column .)

Guess who agreed with Ms. Worters: The agent who answered the phone when I called Travel Insured International’s customer care line as a potential customer. I asked about the clause and she agreed it was ambiguous, checking with a supervisor before saying: “If you are booking directly with the company and the company itself goes under default or bankruptcy, you would be able to file a claim for the nonrefundable portion of your trip.”

Ms. Whilldin, the spokeswoman for Travel Insured International, did not specifically answer my question about this apparent conflict. But it seems their claims adjuster made a mistake, aided by the ambiguous language of the underwriter who wrote the policy. (That’s United States Fire Insurance, another Crum & Forster company.)

Now, let’s discuss the second appeal. “Once you cancel your trip, the coverage under the plan ends,” Travel Insured International said. Your argument is that you did not cancel; Vantage did.

I think almost anyone who isn’t a lawyer would agree with you. But Oren Bar-Gill , a professor at Harvard Law School and the author of “Seduction by Contract: Law, Economics and Psychology in Consumer Markets,” explained to me the opposing argument. Vantage was contractually allowed to change the dates or offer credit, and you refused, the equivalent of canceling.

But, he added, when Vantage agreed to refund your cruise, it could be “considered a waiver of their contractual rights,” weakening the argument that you canceled your contract.

In a lawsuit New York State filed against the now-defunct Vantage and its former owner, Henry Lewis, the issue also comes up: The suit says Vantage “deceptively” mislabeled cancellations as “postponements.”

Even Travel Insured International admitted that Vantage had canceled, in its original letter rejecting your claim. “It is our understanding that your travel supplier, Vantage, canceled your cruise,” the claims adjuster wrote. Somehow, however, by the third response you had gone from cancelee to canceler.

You also missed a red flag when you chose your policy. Suzanne Morrow, the chief executive of InsureMyTrip , where you found your plan, told me you called the company within minutes of your purchase and asked an agent to point you to the bankruptcy clause. (You confirmed this to me.)

That means you’re not the typical insurance customer blindsided by small print you never read. If you were so concerned about the cruise line’s solvency, you could have canceled your plan during the insurer’s “free look” period and chosen one with more straightforward language — I found several on the InsureMyTrip website.

What lessons can we take away from your debacle?

To begin with, pay for everything with a credit card when your credit limit allows. Because of an odd quirk in a 1974 law , card issuers are required to reimburse you if the company you interacted with goes bankrupt.

Beyond that, the basic advice for travel insurance remains unchanged: Shop for a plan separately through a provider you trust or an aggregator like InsureMyTrip, rather than adding trip protection by checking a box just before you purchase a big-ticket item. Read the policy summaries fully and click through to the actual policy document to read fine print on issues that concern you most (say, bankruptcy protection or medical coverage for pre-existing conditions).

If you don’t understand anything, call the company. If it cannot answer satisfactorily and follow up in writing, choose another provider.

If you need advice about a best-laid travel plan that went awry, send an email to [email protected] .

Follow New York Times Travel on Instagram and sign up for our weekly Travel Dispatch newsletter to get expert tips on traveling smarter and inspiration for your next vacation. Dreaming up a future getaway or just armchair traveling? Check out our 52 Places to Go in 2024 .

Seth Kugel is the columnist for “ Tripped Up ,” an advice column that helps readers navigate the often confusing world of travel. More about Seth Kugel

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Covid could not sink cruise lines — but they now face an iceberg of debt

cruise lines financial trouble

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Oliver Barnes and Ian Johnston in London and Andrew Edgecliffe-Johnson in New York

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

At one point in February 2020, a single cruise ship — the Diamond Princess — accounted for more than half of the world’s confirmed cases of Covid-19 outside China. The 3,700 passengers and crew endured a grim quarantine off Japan; seven died.

But Covid has not proved to be an existential threat for the industry. Bookings have surged to pre-pandemic levels. And earlier this month, after a total refit and several deep cleans under its owner Carnival, the Diamond Princess took to the seas for the first time in more than two years, bound for its new home port of San Diego before it returns to full service in September.

“Everybody you speak to on cruises nowadays says: ‘Gee, it’s good to be back home, it’s good to be back on the seas again,’” said Mike Alcock, a 72-year-old retiree from Northamptonshire, who has taken six cruises alongside his wife since the industry returned from the pandemic and has three more booked.

“You wouldn’t go to a hotel that’s as spotlessly clean,” said Alcock, who has so much confidence in the industry’s ability to rebound from the pandemic, he just purchased 500 more Carnival shares. “People are addicted to cruises . . . Of course it’s going to bounce back.”

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cruise lines financial trouble

What could sink many of the industry’s biggest companies is something else entirely: huge icebergs of debt. As cruise ships were moored in docks during the pandemic, the companies that owned them turned to the debt markets in a desperate attempt to stay afloat.

The three major listed cruise companies — which between them control four-fifths of the industry — have all more than doubled their gross debt over the past two years. Consequently, the markets are viewing the companies with caution, even as customers clamour to get back on board.

This week Carnival’s share price plunged 14 per cent after Morgan Stanley downgraded the stock, predicting — in a bear case — that its shares could be worth nothing. “[Carnival’s] leverage looks unsustainably high,” its analysts warned.

Both Carnival and Royal Caribbean rank among the top five losers on the S&P 500 over the past three months — one of the worst quarters for the index on record — having lost around half of their share value. Norwegian is the 13th worst performing stock over the same period.

“The fear in the market is that the boat had sailed on the best part of the post-Covid recovery before the cruise lines were back up and running,” said Chris Woronka, an analyst at Deutsche Bank. “Now we’re talking about a potential consumer slowdown when they just got restarted.”

cruise lines financial trouble

Woronka added that the slow recovery in the cruise industry — due in part to more onerous Covid-19 restrictions from the US Centers for Disease Control and Prevention than are enforced on other travel operators — meant the companies “never really dealt with their balance sheet problems”, leaving them “at the mercy of a tremendous amount of debt”.

Royal Caribbean faces $8bn of debt — a third of its total — maturing in the next 18 months. Carnival and Norwegian have $4.1bn and $1.8bn, respectively, coming due over the same period.

In May, Carnival refinanced $1bn of debt by issuing an unsecured seven-year bond with a pricey 10.5 per cent coupon.

Quarantined passengers look out from their balconies on the Diamond Princess cruise ship moored in the Japanese port of  Yokohama in February 2020

Jason Liberty, Royal Caribbean’s chief executive, told the FT that the high yield “did spook some people”, adding that such high coupons were “certainly not what we were expecting or planning for”.

He acknowledged that Royal Caribbean was likely to have to refinance debt at “a higher level of a coupon than we had anticipated” but stressed that it would not have to refinance all $8bn of debt that is coming due imminently.

Royal Caribbean’s next challenge is a $650mn bond issued in 2012, which will come due in November. While the bond is trading close to face value, suggesting investors expect it to be repaid comfortably, it could be expensive to refinance. Royal Caribbean’s longer-dated debt is trading at yields in excess of 10 per cent.

Ash Nadershahi, a high-yield portfolio manager at Three Bridge Capital said: “They’ll have to refinance at a higher yield . . . the entire cruise industry will maybe have a repricing.”

cruise lines financial trouble

But Liberty insisted some of Royal Caribbean’s $8bn of debts maturing before the end of 2023 could be paid down with the company’s “pretty healthy” $3.8bn in cash and revolving credit facilities and that at least $2bn worth of debt came in the form of convertible bonds, which could be paid out as shares.

For the other pressures weighing on their balance sheets, the companies have been able to come up with workarounds.

Royal Caribbean and Norwegian hedge on fuel costs. For 2022, for instance, Royal Caribbean is 56 per cent hedged at below-market rates. Fuel typically comprises just above 10 per cent of Royal Caribbean’s cost base, but that proportion has risen since Russia’s invasion of Ukraine. Carnival, however, does not have a fuel hedge, so is “much more exposed” to soaring fuel prices, according to Deutsche Bank’s Woronka.

Royal Caribbean is also being “more nimble” in response to inflation in food costs, according to Liberty. The company now sources its bacon from Mexico, for example, where prices are far lower than in the US. “We just load up our ships in Mexico . . . and we just become our own supply chain or transporter of bacon for our fleet.”

The Norwegian Getaway cruise ship docked at the port of Miami

Despite fears of an economic slowdown or even a recession, the companies remain bullish.

“While not recession-proof, our business has proven to be recession-resilient time and again,” said Arnold Donald, Carnival’s outgoing CEO on an earnings call last week. Liberty said Royal Caribbean’s competitive pricing would help it weather a recession. “We trade at a pretty significant discount to land-based vacations,” he stressed.

The experience of the recession following the 2008-09 financial crisis showed that “people will do a lot to avoid giving up their cruise vacations”, according to Stewart Chiron, an independent industry consultant.

“Cruisers are very loyal,” said Chiron. “They’ll make sacrifices in other areas: they’ll eat out less, they may get different cars, they’ll change their spending patterns.”

But investors are unconvinced. “Investors have basically said I don’t really care about one good year in which the sector recovers,” said Alex Brignall, a travel and leisure analyst at Redburn. “A recession will just make 2023 terrible.

“The profitability recovery [for cruise lines] has been terrible, balance sheets are very stretched, they are very operationally levered companies and they have a lot of debt to repay or refinance. So in a recession, they would be abysmal.”

Letter in response to this article :

A sinking feeling faces the cruise ship tourist sector  /  From Richard Freeman, Kensington, CA, US

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Norwegian Cruise Line Holdings Reports First Quarter 2024 Financial Results

  • May 1, 2024

Norwegian Cruise Line Ship

Norwegian Cruise Line Holdings today reported financial results for the first quarter ended March 31, 2024 and provided guidance for the second quarter and full year 2024.

First Quarter 2024 Highlights:

  • Generated total revenue of $2.2 billion, a 20% increase compared to the same period in 2023 on 8% capacity growth, with GAAP net income of $17.4 million, or EPS of $0.04.
  • Adjusted EBITDA nearly doubled over the prior year to $464.0 million, above guidance of $450 million. Achieved Adjusted EPS of $0.16, exceeding guidance of $0.12, compared to a loss of $(0.30) in the first quarter of 2023. Quarter performance was driven by strong revenue growth and continued focus on cost reductions and efficiencies. 1
  • The Company’s ongoing margin enhancement initiative drove continued improvement in operating costs. Gross Cruise Costs per Capacity Day was approximately $300 for the quarter. Adjusted Net Cruise Costs excluding Fuel per Capacity Day was approximately $165, or $164 in Constant Currency, in line with guidance, and flat year-over-year when the $5 Dry-dock impact is excluded.
  • Occupancy was 104.6% for the quarter, in line with guidance, and total revenue per Passenger Cruise Day increased approximately 8%, compared to Q1 2023.
  • Gross margin per Capacity Day was up 53% versus 2023 on an as reported and Constant Currency basis. Net Yield growth beat guidance increasing approximately 16.4%, or 16.2% versus 2023 on a Constant Currency basis.
  • Total debt was $13.7 billion. Net Leverage declined a full turn from December 31, 2023, ending the quarter at 6.3x.

Recent Highlights

  • Announced the most transformative newbuild program in the Company’s history—a total of eight state-of-the-art vessels, representing nearly 25,000 additional berths, with new classes of ships for each of its three award-winning brands—and the construction of a multi-ship pier at Great Stirrup Cay, the Company’s private island destination in the Bahamas.
  • S&P Global Ratings (S&P) upgraded both NCLC’s issuer credit rating and issue-level ratings. NCLC’s issuer credit rating has been upgraded to B+, marking a notable improvement in the Company’s creditworthiness. In addition, S&P raised the issue-level ratings on NCLC’s existing secured and unsecured debt. The Company’s senior secured debt ratings were raised to BB/BB- and its unsecured debt rating was upgraded two notches to B.

2024 Outlook

  • Record bookings during the first quarter, drove a record booked position for the next twelve months.
  • 2024 full year Net Yield guidance on a Constant Currency basis increased 100 basis points from the prior guidance to approximately 6.4% from 5.4%.
  • 2024 full year Adjusted EBITDA guidance increased $50 million from the prior guidance to approximately $2.25 billion from $2.20 billion.
  • Full year Adjusted Net Income guidance increased $45 million from prior guidance to $680 million from $635 million, and Adjusted EPS guidance increased $0.09 from prior guidance to $1.32 from $1.23.

“We kicked off 2024 with impressive momentum, with record bookings in the first quarter propelling us to continue our all-time high booked position and an unprecedented level of advance ticket sales. These achievements demonstrate the continued growing demand we are experiencing for our product and offerings,” remarked Harry Sommer, president and chief executive officer of Norwegian Cruise Line Holdings Ltd.

“Recently, we announced the most comprehensive newbuild program in our Company’s history- eight state-of-the-art vessels, each a new class for our three award-winning brands as well as the construction of a new pier at Great Stirrup Cay. Later this month at our Investor Day, we will be unveiling our comprehensive multi-year strategic, operational and financial updates, which will underscore our focus on delivering experiences that our guests truly value. By enhancing our capacity and elevating our product to create the best, largest, and most efficient vessels in our fleet, we are honoring our 57-year history of innovation that has always driven our growth and continues to be at the forefront of what we do,” continued Sommer.

Business, Operations and Booking Environment Update

The Company continues to experience healthy consumer demand and thanks to a strong WAVE season, had record bookings during the first quarter leading to a continued record booked position for the next twelve months. Additionally, onboard revenue per Capacity Day remains robust, up 11% in the quarter compared to 2023, with broad-based strength across all revenue streams. The Company’s advance ticket sales balance, including the long-term portion, ended the first quarter of 2024 at an all-time record high of $3.8 billion, approximately 13% higher than the same period of 2023.

Occupancy was 104.6% for the first quarter of 2024, in line with guidance. Full year 2024 Occupancy is expected to average 105.1%, consistent with prior guidance. In addition, pricing growth in the first quarter was also strong with total revenue per Passenger Cruise Day up approximately 8%, with capacity growth of 8% compared to 2023. Gross margin per Capacity Day was approximately $102 in the quarter, up 53% versus 2023 on an as reported and Constant Currency basis. Net Yield growth was up approximately 16.4%, or 16.2% versus 2023 on a Constant Currency basis, above guidance.

The Company demonstrated continued progress on its ongoing margin enhancement initiative and efforts to maximize revenue opportunities and rightsize its cost base. Gross Cruise Costs per Capacity Day was approximately $300 in the first quarter, compared to $298 last year. Adjusted Net Cruise Costs excluding Fuel per Capacity Day in the first quarter of 2024 was approximately $165, or $164 in Constant Currency, which included a $5 impact from increased Dry-dock days and related costs, in line with guidance and essentially flat year-over-year without the impact of these Dry-docks.

For the full year 2024, the Company increased its Net Yield guidance by 100 basis points from prior guidance to growth of approximately 6.4% from approximately 5.4% on a Constant Currency basis compared to 2023. The increase in guidance is driven by exceptional demand across all three brands which almost fully offsets the impact from the redeployed voyages related to the Middle East and Red Sea. Full year Adjusted Net Cruise Cost Excluding Fuel per Capacity Day guidance remained unchanged and is expected to be approximately $159, increasing approximately 3.4% in Constant Currency, which includes an approximate 300 basis point impact from Dry-dock days and related costs in the year. Excluding this impact, Adjusted Net Cruise Cost Excluding Fuel per Capacity Day would be essentially flat year-over-year. As a result, full year 2024 Adjusted EBITDA guidance increased by $50 million to $2.25 billion from $2.20 billion and Adjusted EPS guidance was increased by $0.09 to approximately $1.32 from approximately $1.23.

Liquidity and Financial Position

The Company is committed to prioritizing efforts to optimize its balance sheet and reduce leverage. As of March 31, 2024, the Company had total debt of $13.7 billion and Net Debt of $13.2 billion and improved its Net Leverage by a full turn compared to December 31, 2023, ending the first quarter of 2024 with Net Leverage of 6.3x.

At quarter-end, liquidity was $2.4 billion. This consists of approximately $559.8 million of cash and cash equivalents, $1.2 billion of availability under the company’s undrawn Revolving Loan Facility and a $650 million undrawn backstop commitment.

“In March 2024 we successfully refinanced our $650 million backstop commitment, replacing the secured commitment with an unsecured commitment. Additionally, as part of this refinancing, we repaid our $250 million 9.75% senior secured notes due 2028, our highest interest rate debt,” the company stated.

“We are pleased to report that we exceeded our guidance metrics for the first quarter of 2024. Thanks to robust consumer demand and continued success on our operational efficiency efforts, we are raising our 2024 full-year guidance for key metrics including Net Yield, Adjusted EBITDA and Adjusted EPS,” said Mark A. Kempa, executive vice president and chief financial officer of Norwegian Cruise Line Holdings Ltd.

Kempa continued, “the momentum we are experiencing allows us to make significant progress on our deleveraging efforts. During the first quarter of 2024 we reduced Net Leverage by a full turn from the end of 2023, ending the quarter at 6.3x. We plan to continue this trend and expect to reduce Net Leverage 1.5 turns during the year compared to 2023 year-end, marking an important milestone in improving our balance sheet.”

First Quarter 2024 Results

GAAP net income was $17.4 million or EPS of $0.04 compared to net loss of $(159.3) million or EPS of $(0.38) in the prior year. The Company reported Adjusted Net Income of $69.5 million or Adjusted EPS of $0.16 in the first quarter of 2024. This compares to Adjusted Net Loss and Adjusted EPS of $(127.7) million and $(0.30), respectively, in the first quarter of 2023. Adjusted EBITDA in the first quarter was approximately $464.0 million, better than guidance of $450 million, and almost doubled compared to 2023, driven primarily by solid revenue performance and Adjusted Net Cruise Cost Excluding Fuel that was essentially flat year-on-year excluding the impact of Dry-docks.

Gross Cruise Costs per Capacity Day was approximately $300 in the quarter. Adjusted Net Cruise Costs excluding Fuel per Capacity Day was approximately $165, or $164 in Constant Currency, which includes $5 related to Dry-dock days, and would have been essentially flat year-over-year without these Dry-dock impacts, reflecting the benefits from the Company’s ongoing margin enhancement initiative.

The Company reported fuel expense of $198 million in the quarter. Fuel price per metric ton, net of hedges, decreased to $735 from $779 in 2023. Fuel consumption of 269,000 metric tons was slightly better than projections.

Interest expense, net was $218.2 million in 2024 compared to $171.3 million in 2023. The increase in interest expense reflects higher losses in 2024 from extinguishment of debt and debt modification costs, which were $29.0 million in 2024 compared to $2.4 million in 2023. Excluding these losses, the increase in interest expense was primarily a result of higher debt outstanding and higher rates.

Other income (expense), net was an income of $18.1 million in 2024 compared to an expense of $(9.0) million in 2023.

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Norwegian cruise line holdings reports strong fourth quarter and full year 2023 financial results.

MIAMI, Feb. 27, 2024 (GLOBE NEWSWIRE) -- Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) (together with NCL Corporation Ltd., “Norwegian Cruise Line Holdings”, “Norwegian”, “NCLH” or the “Company”) today reported financial results for the fourth quarter and year ended December 31, 2023 and provided guidance for the first quarter and full year 2024.

Full Year 2023 Highlights:

Generated total revenue of $8.5 billion, a 32% increase compared to the same period in 2019, with GAAP net income of $166.2 million, or EPS of $0.39 returning to full year profitability for the first time since 2019.

Achieved Adjusted EBITDA of $1.861 billion in line with guidance of $1.860 billion and Adjusted EPS of $0.70, which is inclusive of a $0.07 foreign currency negative impact. Full year performance was driven by solid revenue growth and continued focus on cost reduction and efficiencies. 1

The Company’s ongoing margin enhancement initiative drove improvement in operating costs. Gross Cruise Costs per Capacity Day was approximately $301 for the year. Adjusted Net Cruise Costs excluding Fuel per Capacity Day was approximately $154, and 21% less than the same period in 2022. This represents four quarters of continuous year-over-year improvement on this metric.

Occupancy was 102.9% for the year, in line with guidance of 102.6%, and total revenue per Passenger Cruise Day increased approximately 17%, or 18% in Constant Currency, compared to the same period in 2019.

Announced a revamped climate action strategy including interim greenhouse gas intensity reduction targets of 10% by 2026 and 25% by 2030 compared to a 2019 baseline with intensity measured on a per Capacity Day basis.

Successfully took delivery of three ships, Oceania Cruises’ Vista, Norwegian’s Viva and Regent’s Seven Seas Grandeur, the most deliveries in a single year in the Company’s history.

________________________ 1 See “Terminology”, “Non-GAAP Financial Measures” and “Outlook” below for additional information about Adjusted EPS, Adjusted EBITDA and other non-GAAP financial measures.

Recent Highlights

Expected refinancing of our $650 million backstop commitment from a secured to unsecured commitment. Additionally, as part of this refinancing, expected repayment of our $250 million 9.75% senior secured notes due 2028, our highest interest rate debt. 2

We have continued to see exceptional demand for our Norwegian Cruise Line brand, with bookings and pricing at higher levels than 2023 for all four quarters of 2024. Oceania Cruises and Regent Seven Seas Cruises also continue to see strong demand across all geographies with the exception of redeployed itineraries due to cancellations in the Middle East and Red Sea.

________________________ 2 Refinancing terms have been agreed to, with effectiveness subject to approval by our Board of Directors expected in early March.

2024 Outlook

Entered the year at all-time high booked position and pricing for 2024 voyages.

Net Yield is expected to increase approximately 5.5% as-reported and approximately 5.4% in Constant Currency versus 2023.

In 2024 Adjusted Net Cruise Costs Excluding Fuel per Capacity Day is expected to be $159, increasing 3.4% in Constant Currency, which includes an approximately 325 basis points impact of increased Dry-dock days and related costs in the year. Excluding this, Adjusted Net Cruise Cost Excluding Fuel per Capacity Day would be essentially flat year-over-year.

Adjusted EBITDA is expected to be approximately $2.2 billion, Adjusted Net Income is expected to be approximately $635 million, and Adjusted EPS is expected to be approximately $1.23, an increase of 76% over 2023 results. This Adjusted EPS takes into consideration ~516 million dilutive shares, reflecting the expected accounting treatment of our exchangeable notes.

“Norwegian Cruise Line Holding experienced a momentous year of growth and achievement in 2023. We successfully took delivery of three new ships, one for each of our brands, representing the most deliveries in a single year in our Company’s 57-year history. This important milestone showcases our dedication to innovation and commitment to providing exceptional vacation experiences for our guests,” remarked Harry Sommer, president and chief executive officer of Norwegian Cruise Line Holdings Ltd.

“Looking ahead, we are determined to capitalize on our recent achievements and take advantage of the positive momentum and strong demand for cruise which resulted in turning the year at all-time highs in both our booked position and pricing. Our team is looking forward to showcasing our world-class fleet, delivering exceptional experiences, and surpassing the expectations of the guests we will welcome on board in 2024 and beyond,” continued Sommer.

Business, Operations and Booking Environment Update

The Company continues to experience healthy consumer demand and is at an all-time high booked position and pricing reflective of some of the best booking weeks in the Company’s history beginning with Black Friday and Cyber Monday. Additionally, onboard revenue per Passenger Cruise Day remains robust, up 20% in the quarter compared to 2019, with broad-based strength across all revenue streams. The Company’s advance ticket sales balance, including the long-term portion, ended 2023 at a year-end record of $3.2 billion, approximately 56% higher than at the end of 2019.

As a result of the ongoing conflict in Israel and the Red Sea, the Company cancelled and redirected all calls to Israel during the fourth quarter of 2023. As a result, Occupancy was 99.2% for the fourth quarter of 2023, and full year Occupancy was 102.9%, in line with guidance. Additionally, all calls to Israel and the Red Sea have been cancelled and redirected for the entirety of 2024. Prior to the conflict, approximately 7% of the capacity in the fourth quarter of 2023 and 4% of capacity for the full year 2024 expected to visit the Middle East 3 , predominantly on our Oceania Cruises and Regent Seven Seas Cruises brands. Prior to the recent cancellations, approximately 1% of 2024 capacity was expected to sail through the Red Sea.

Pricing growth in the fourth quarter was also strong with total revenue per Passenger Cruise Day up approximately 21%, with capacity growth of 17% compared to 2019. Total revenue was up approximately 34% in the fourth quarter versus 2019. Gross margin per Capacity Day was approximately $79 in the quarter. Net Yield growth was approximately 8.2%, or 8.6% versus 2019 on a Constant Currency basis, in line with guidance.

The Company once again demonstrated continued progress on its ongoing margin enhancement initiative and efforts to maximize revenue opportunities and rightsize its cost base. Gross Cruise Costs per Capacity Day was approximately $280 in the fourth quarter, compared to $311 last quarter. Adjusted Net Cruise Costs excluding Fuel per Capacity Day in the fourth quarter of 2023 was approximately $151, in line with guidance.

For the full year 2024, the Company expects Net Yield growth to be strong at approximately 5.4% on a Constant Currency basis compared to 2023. This growth is driven by exceptional demand for Norwegian Cruise Line with Oceania Cruises and Regent Seven Seas Cruises also experiencing strong demand across all geographies with the exception of voyages redeployed due to the conflicts in the Middle East and Red Sea. Full year Adjusted Net Cruise Cost Excluding Fuel per Capacity Day is expected to be approximately $159, increasing approximately 3.4% in Constant Currency, which includes an approximately 325 basis points impact of increased Dry-dock days and related costs in the year. Excluding this impact, Adjusted Net Cruise Cost Excluding Fuel per Capacity Day would be essentially flat year-over-year. Adjusted EBITDA is expected to grow 18% to approximately $2.2 billion during 2023 and Adjusted EPS is expected to grow 76% to approximately $1.23.

________________________ 3 Middle East includes Bahrain, Cyprus, Egypt, Israel, Jordan, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

Liquidity and Financial Position

The Company is committed to prioritizing efforts to optimize its balance sheet and reduce leverage. As of December 31, 2023, the Company had total debt of $14.1 billion and total Net Debt of $13.7 billion and continues to expect improvement in its Net Leverage. The Company repaid $1.9 billion of debt in 2023, which included the pay down in full of our $875 million Revolving Loan Facility.

At year-end, liquidity was $2.3 billion. This consists of approximately $402.4 million of cash and cash equivalents, $1.2 billion of availability under our Revolving Loan Facility and a $650 million undrawn backstop commitment. In March 2024 we expect to refinance our $650 million backstop commitment, replacing the secured commitment with an unsecured commitment. Additionally, as part of this refinancing, we expect to repay our $250 million 9.75% senior secured notes due 2028, our highest interest rate debt.

“Throughout the year, we successfully implemented measures to rightsize our cost base. Notably, the fourth quarter of 2023 marked our fourth consecutive quarter of improved Adjusted Net Cruise Costs Excluding Fuel per Capacity Day, this resulted in a substantial 21% reduction in 2023 compared to 2022,” said Mark A. Kempa, executive vice president and chief financial officer of Norwegian Cruise Line Holdings Ltd.

Kempa continued, “additionally, we made important advancements towards reducing leverage and de-risking our balance sheet during 2023. We repaid $1.9 billion of debt during the year, which included the pay down in full of our $875 million Revolving Loan Facility, and we remain confident that our strong liquidity position, ongoing cash generation and favorable growth prospects enable us to meaningfully reduce leverage over the course of 2024. We recently negotiated a refinancing of our $650 million backstop commitment and in connection with that, expect to repay our highest rate debt, the $250 million 9.75% senior secured notes due 2028. This transaction, which is expected to close in early March, will reduce interest expense and improve leverage while releasing the related secured collateral, another important step forward in improving our balance sheet.”

Full Year 2023 Results

GAAP net income was $166.2 million or EPS of $0.39 compared to net loss of $(2.3) billion or EPS of $(5.41) in the prior year. The Company reported Adjusted Net Income of $298.0 million or Adjusted EPS of $0.70 in the year. This compares to Adjusted Net Loss and Adjusted EPS of $(1.9) billion and $(4.64), respectively, in the prior year. Adjusted EBITDA was approximately $1.9 billion, in line with guidance driven primarily by solid revenue performance and lower Adjusted Net Cruise Cost Excluding Fuel.

Total revenue per Passenger Cruise Day increased approximately 17%, or approximately 18% on a Constant Currency basis compared to 2019. Gross margin per Capacity Day decreased approximately 11% on a reported, or approximately 10% on a Constant Currency basis, compared to 2019. Net Yield increased 4.6% on a Constant Currency basis compared to 2019.

Gross Cruise Cost per Capacity Day was $301, an approximately 6% decline from the prior year. Adjusted Net Cruise Cost Excluding Fuel per Capacity Day was approximately $155 on a Constant Currency basis, an approximately 21% decline from the prior year.

Fourth Quarter 2023 Results

GAAP net loss was $(106.5) million or EPS of $(0.25) compared to net loss of $(482.5) million or EPS of $(1.14) in the prior year. The Company reported Adjusted Net Loss of $(77.1) million or Adjusted EPS of $(0.18) in the fourth quarter of 2023. This compares to Adjusted Net Loss and Adjusted EPS of $(439.7) million and $(1.04), respectively, in the fourth quarter of 2022. Adjusted EBITDA in the fourth quarter was approximately $359.6 million, in line with guidance driven primarily by solid revenue performance and lower Adjusted Net Cruise Cost Excluding Fuel.

Gross Cruise Costs per Capacity Day was approximately $280 in the quarter. Adjusted Net Cruise Costs excluding Fuel per Capacity Day was approximately $151, reflecting an approximately 19% decline from the fourth quarter of 2022, reflecting the benefits from the Company’s ongoing margin enhancement initiative.

The Company reported fuel expense of $187 million in the quarter. Fuel price per metric ton, net of hedges, decreased to $726 from $755 in 2022. Fuel consumption of 257,000 metric tons was in line with projections.

Interest expense, net was $197.4 million in 2023 compared to $177.1 million in 2022. The increase in interest expense is primarily the result of higher debt outstanding and higher interest rates.

Other income (expense), net was an expense of $(35.3) million in 2023 compared to an expense of $(24.0) million in 2022.

Outlook and Guidance

In addition to announcing the results for the fourth quarter and full year 2023, the Company also provided guidance for the first quarter and full year 2024, along with accompanying sensitivities. The Company does not provide certain estimated future results on a GAAP basis because the Company is unable to predict, with reasonable certainty, the future movement of foreign exchange rates or the future impact of certain gains and charges. These items are uncertain and will depend on several factors, including industry conditions, and could be material to the Company’s results computed in accordance with GAAP. The Company has not provided reconciliations between the Company’s 2024 guidance and the most directly comparable GAAP measures because it would be too difficult to prepare a reliable U.S. GAAP quantitative reconciliation without unreasonable effort.

________________________ (1)   Q1 2024 includes an approximate 350 basis point, or $6, impact of increased Dry-dock days and related costs. Excluding this impact, the Adjusted Net Cruise Cost Excluding Fuel per Capacity Day would be essentially flat year-over-year, amounting to $159 in Q1 2024 as reported and in Constant Currency. Full Year 2024 includes an approximate 325 basis point, or $5, impact of increased Dry-dock days and related costs. Excluding this impact, the Adjusted Net Cruise Cost Excluding Fuel per Capacity Day would be essentially flat year-over-year, amounting to $154 in 2024 as reported and in Constant Currency. (2)   Based on guidance and using diluted weighted-average shares outstanding of approximately 431 million for the first quarter of 2024 and 516 million for full year 2024. Adjusted EPS for the full year 2024 assumes that all four of the Company’s exchangeable notes are fully dilutive and therefore excludes approximately $63 million of interest expense for 2024 associated with the Company’s exchangeable notes. (3)   Q1 2024 assumes all four of the Company’s exchangeable notes are anti-dilutive and therefore are not included in diluted weighted-average shares outstanding. Full year 2024 assumes all four of the Company’s exchangeable notes are dilutive and are included in the diluted weighted-average shares outstanding. (4)   Based on the Company’s December 31, 2023 outstanding variable rate debt balance, a one percentage point increase in annual SOFR interest rates would increase the Company’s annual interest expense by approximately $7 million excluding the effects of capitalization of interest.

The following reflects the foreign currency exchange rates the Company used in its first quarter and full year 2024 guidance.

The following reflects the Company’s expectations regarding fuel consumption and pricing, along with accompanying sensitivities.

________________________ (1)   Fuel consumption for the full year 2024 is expected to be split approximately evenly between heavy fuel oil and marine gas oil. (2)   Fuel prices are based on forward curves as of 2/19/2024.

The Company currently has hedged approximately 53% and 21% of its total projected metric tons of fuel consumption for 2024 and 2025, respectively. The following table provides amounts hedged and price per metric ton of heavy fuel oil (“HFO”) and marine gas oil (“MGO”).

________________________ (1)   Hedged derivatives include accounting hedges as well as economic hedges.

Capital Expenditures

Non-newbuild capital expenditures for the fourth quarter of 2023 were $102 million. Anticipated non-newbuild capital expenditures for full year 2024 are expected to be approximately $475 million including approximately $113 million in the first quarter.

Newbuild-related capital expenditures, net of export credit financing, are expected to be approximately $0.2 billion, $0.6 billion and $0.6 billion for the full years ending December 31, 2024, 2025 and 2026, respectively. Net newbuild-related capital expenditures for the fourth quarter of 2023 were $98 million including the delivery of Regent Seven Seas Grandeur in November and are expected to be approximately $40 million for the first quarter of 2024.

Company Updates and Other Business Highlights:

Fleet and Brand Updates

Norwegian Cruise Line opened for sale the all-new Norwegian Aqua, the first of the next-generation Prima Class Plus. Learn more here .

Norwegian Cruise Line’s all-new Norwegian Viva completed her exclusive christening voyage following a star-studded event in Miami. Learn more here .

Regent Seven Seas Cruises® took delivery of the highly anticipated Seven Seas Grandeur™, the sixth ship of the World’s Most Luxurious Fleet ® . The ship was christened at a gala celebration in Miami which featured the unveiling of the first Fabergé egg to reside permanently at sea. Learn more here and here .

Oceania Cruises announced inspiring new voyages on the Riviera, exploring lesser-known ports across the African and Asian Continents. Learn more here .

Regent Seven Seas Cruises® announced a collection of six unique Immersive Overnights voyages where each port of call features an overnight stay – allowing for deeper exploration and discovery in much-loved destinations. Learn more here .

Regent Seven Seas Cruises® announced a landmark partnership with the iconic Aston Martin Aramco Formula One ® Team, becoming the team’s first official Global Cruise Line Partner. Learn more here .

Other Highlights

Norwegian Cruise Line Holdings was selected by Newsweek as one of America’s Greatest Workplaces for Diversity 2024.

Conference Call

The Company has scheduled a conference call for Tuesday, February 27, 2024 at 10:00 a.m. Eastern Time to discuss fourth quarter and full year 2023 results and provide a business update. A link to the live webcast along with a slide presentation can be found on the Company’s Investor Relations website at https://www.nclhltd.com/investors . A replay of the conference call will also be available on the website for 30 days after the call.

About Norwegian Cruise Line Holdings Ltd.

Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) is a leading global cruise company which operates Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises. With a combined fleet of 32 ships and approximately 66,500 berths, NCLH offers itineraries to approximately 700 destinations worldwide. NCLH has five additional ships scheduled for delivery across its three brands, which will add approximately 16,000 berths to its fleet. To learn more, visit www.nclhltd.com.

Terminology

Adjusted EBITDA . EBITDA adjusted for other income (expense), net and other supplemental adjustments.

Adjusted EPS. Adjusted Net Income (Loss) divided by the number of diluted weighted-average shares outstanding.

Adjusted Gross Margin. Gross margin adjusted for payroll and related, fuel, food, other and ship depreciation. Gross margin is calculated pursuant to GAAP as total revenue less total cruise operating expense and ship depreciation.

Adjusted Free Cash Flow. Free Cash Flow adjusted for proceeds from ship construction financing facilities and other supplemental adjustments.

Adjusted Net Cruise Cost Excluding Fuel . Net Cruise Cost less fuel expense adjusted for supplemental adjustments.

Adjusted Net Income (Loss).  Net income (loss), adjusted for the effect of dilutive securities and other supplemental adjustments.

Berths . Double occupancy capacity per cabin (single occupancy per studio cabin) even though many cabins can accommodate three or more passengers.

Capacity Days. Berths available for sale multiplied by the number of cruise days for the period for ships in service.

Constant Currency. A calculation whereby foreign currency-denominated revenues and expenses in a period are converted at the U.S. dollar exchange rate of a comparable period in order to eliminate the effects of foreign exchange fluctuations.

Dry-dock. A process whereby a ship is positioned in a large basin where all of the fresh/sea water is pumped out in order to carry out cleaning and repairs of those parts of a ship which are below the water line.

EBITDA. Earnings before interest, taxes, and depreciation and amortization.

EPS. Diluted earnings (loss) per share.

Free Cash Flow . Net cash provided by operating activities less capital expenditures.

GAAP. Generally accepted accounting principles in the U.S.

Gross Cruise Cost. The sum of total cruise operating expense and marketing, general and administrative expense.

Net Cruise Cost . Gross Cruise Cost less commissions, transportation and other expense and onboard and other expense.

Net Cruise Cost Excluding Fuel . Net Cruise Cost less fuel expense.

Net Debt . Long-term debt, including current portion, less cash and cash equivalents.

Net Leverage . Net Debt divided by Adjusted EBITDA.

Net Per Diem. Adjusted Gross Margin divided by Passenger Cruise Days.

Net Yield. Adjusted Gross Margin per Capacity Day.

Occupancy, Occupancy Percentage or Load Factor. The ratio of Passenger Cruise Days to Capacity Days. A percentage in excess of 100% indicates that three or more passengers occupied some cabins.

Passenger Cruise Days . The number of passengers carried for the period, multiplied by the number of days in their respective cruises.

Revolving Loan Facility . $875 million senior secured revolving credit facility as of September 30, 2023, which was increased to $1.2 billion in October 2023.

Non-GAAP Financial Measures

We use certain non-GAAP financial measures, such as Adjusted Gross Margin, Net Yield, Net Cruise Cost, Adjusted Net Cruise Cost Excluding Fuel, Adjusted EBITDA, Net Leverage, Net Debt, Adjusted Net Income (Loss), Adjusted EPS, Net Per Diem, Free Cash Flow and Adjusted Free Cash Flow, to enable us to analyze our performance. See “Terminology” for the definitions of these and other non-GAAP financial measures. We utilize Adjusted Gross Margin, Net Yield, and Net Per Diem to manage our business on a day-to-day basis because they reflect revenue earned net of certain direct variable costs. We also utilize Net Cruise Cost and Adjusted Net Cruise Cost Excluding Fuel to manage our business on a day-to-day basis. In measuring our ability to control costs in a manner that positively impacts net income (loss), we believe changes in Adjusted Gross Margin, Net Yield, Net Cruise Cost and Adjusted Net Cruise Cost Excluding Fuel to be the most relevant indicators of our performance.

As our business includes the sourcing of passengers and deployment of vessels outside of the U.S., a portion of our revenue and expenses are denominated in foreign currencies, particularly British pound, Canadian dollar, Euro and Australian dollar which are subject to fluctuations in currency exchange rates versus our reporting currency, the U.S. dollar. In order to monitor results excluding these fluctuations, we calculate certain non-GAAP measures on a Constant Currency basis, whereby current period revenue and expenses denominated in foreign currencies are converted to U.S. dollars using currency exchange rates of the comparable period. We believe that presenting these non-GAAP measures on both a reported and Constant Currency basis is useful in providing a more comprehensive view of trends in our business.

We believe that Adjusted EBITDA is appropriate as a supplemental financial measure as it is used by management to assess operating performance. We also believe that Adjusted EBITDA is a useful measure in determining our performance as it reflects certain operating drivers of our business, such as sales growth, operating costs, marketing, general and administrative expense and other operating income and expense. In addition, management uses Adjusted EBITDA as a performance measure for our incentive compensation. Adjusted EBITDA is not a defined term under GAAP nor is it intended to be a measure of liquidity or cash flows from operations or a measure comparable to net income (loss), as it does not take into account certain requirements such as capital expenditures and related depreciation, principal and interest payments and tax payments and it includes other supplemental adjustments.

In addition, Adjusted Net Income (Loss) and Adjusted EPS are non-GAAP financial measures that exclude certain amounts and are used to supplement GAAP net income (loss) and EPS. We use Adjusted Net Income (Loss) and Adjusted EPS as key performance measures of our earnings performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparison to our historical performance. In addition, management uses Adjusted EPS as a performance measure for our incentive compensation. The amounts excluded in the presentation of these non-GAAP financial measures may vary from period to period; accordingly, our presentation of Adjusted Net Income (Loss) and Adjusted EPS may not be indicative of future adjustments or results. For example, for the year ended December 31, 2022, we incurred $12.1 million related to restructuring costs or charges. We included this as an adjustment in the reconciliation of Adjusted Net Income (Loss) since the expenses are not representative of our day-to-day operations; however, this adjustment did not occur and is not included in the comparative period presented within.

Net Leverage and Net Debt are performance measures that we believe provide management and investors a more complete understanding of our leverage position and borrowing capacity after factoring in cash and cash equivalents.

Management believes Free Cash Flow and Adjusted Free Cash Flow provide investors with useful financial metrics to assess our ability to service and repay our debt and to pursue opportunities to enhance our growth after making the capital investments required to support ongoing business operations and long-term value creation. Free Cash Flow and Adjusted Free Cash Flow do not represent the residual cash flow available for discretionary expenditures as they exclude certain mandatory expenditures such as repayment of maturing debt. Management uses Free Cash Flow and Adjusted Free Cash Flow as measures to assess both business performance and overall liquidity.

You are encouraged to evaluate each adjustment used in calculating our non-GAAP financial measures and the reasons we consider our non-GAAP financial measures appropriate for supplemental analysis. In evaluating our non-GAAP financial measures, you should be aware that in the future we may incur expenses similar to the adjustments in our presentation. Our non-GAAP financial measures have limitations as analytical tools, and you should not consider these measures in isolation or as a substitute for analysis of our results as reported under GAAP. Our presentation of our non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our non-GAAP financial measures may not be comparable to other companies. Please see a historical reconciliation of these measures to the most comparable GAAP measure presented in our consolidated financial statements below.

Cautionary Statement Concerning Forward-Looking Statements

Some of the statements, estimates or projections contained in this release are “forward-looking statements” within the meaning of the U.S. federal securities laws intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained, or incorporated by reference, in this release, including, without limitation, those regarding our business strategy, financial position, results of operations, plans, prospects, actions taken or strategies being considered with respect to our liquidity position, valuation and appraisals of our assets and objectives of management for future operations (including those regarding expected fleet additions, our expectations regarding the impact of macroeconomic conditions and recent global events, our expectations regarding cruise voyage occupancy, operational position, demand for voyages, plans or goals for our sustainability program and decarbonization efforts, our expectations for future cash flows and profitability, financing opportunities and extensions, and efforts to reduce operating expenses and capital expenditures) are forward-looking statements. Many, but not all, of these statements can be found by looking for words like “expect,” “anticipate,” “goal,” “project,” “plan,” “believe,” “seek,” “will,” “may,” “forecast,” “estimate,” “intend,” “future” and similar words. Forward-looking statements do not guarantee future performance and may involve risks, uncertainties and other factors which could cause our actual results, performance or achievements to differ materially from the future results, performance or achievements expressed or implied in those forward-looking statements. Examples of these risks, uncertainties and other factors include, but are not limited to the impact of: adverse general economic factors, such as fluctuating or increasing levels of interest rates, inflation, unemployment, underemployment and the volatility of fuel prices, declines in the securities and real estate markets, and perceptions of these conditions that decrease the level of disposable income of consumers or consumer confidence; implementing precautions in coordination with regulators and global public health authorities to protect the health, safety and security of guests, crew and the communities we visit and to comply with related regulatory restrictions; our indebtedness and restrictions in the agreements governing our indebtedness that require us to maintain minimum levels of liquidity and be in compliance with maintenance covenants and otherwise limit our flexibility in operating our business, including the significant portion of assets that are collateral under these agreements; our ability to work with lenders and others or otherwise pursue options to defer, renegotiate, refinance or restructure our existing debt profile, near-term debt amortization, newbuild related payments and other obligations and to work with credit card processors to satisfy current or potential future demands for collateral on cash advanced from customers relating to future cruises; our need for additional financing or financing to optimize our balance sheet, which may not be available on favorable terms, or at all, and our outstanding exchangeable notes and any future financing which may be dilutive to existing shareholders; the unavailability of ports of call; future increases in the price of, or major changes, disruptions or reduction in, commercial airline services; changes involving the tax and environmental regulatory regimes in which we operate, including new regulations aimed at reducing greenhouse gas emissions; the accuracy of any appraisals of our assets; our success in controlling operating expenses and capital expenditures; trends in, or changes to, future bookings and our ability to take future reservations and receive deposits related thereto; adverse events impacting the security of travel, or customer perceptions of the security of travel, such as terrorist acts, armed conflict, such as Russia’s invasion of Ukraine or the Israel-Hamas war, or threats thereof, acts of piracy, and other international events; public health crises, including the COVID-19 pandemic, and their effect on the ability or desire of people to travel (including on cruises); adverse incidents involving cruise ships; our ability to maintain and strengthen our brand; breaches in data security or other disturbances to our information technology systems and other networks or our actual or perceived failure to comply with requirements regarding data privacy and protection; changes in fuel prices and the type of fuel we are permitted to use and/or other cruise operating costs; mechanical malfunctions and repairs, delays in our shipbuilding program, maintenance and refurbishments and the consolidation of qualified shipyard facilities; the risks and increased costs associated with operating internationally; our inability to recruit or retain qualified personnel or the loss of key personnel or employee relations issues; impacts related to climate change and our ability to achieve our climate-related or other sustainability goals; our inability to obtain adequate insurance coverage; pending or threatened litigation, investigations and enforcement actions; volatility and disruptions in the global credit and financial markets, which may adversely affect our ability to borrow and could increase our counterparty credit risks, including those under our credit facilities, derivatives, contingent obligations, insurance contracts and new ship progress payment guarantees; any further impairment of our trademarks, trade names or goodwill; our reliance on third parties to provide hotel management services for certain ships and certain other services; fluctuations in foreign currency exchange rates; our expansion into new markets and investments in new markets and land-based destination projects; overcapacity in key markets or globally; and other factors set forth under “Risk Factors” in our most recently filed Annual Report on Form 10-K, Quarterly Report on Form 10-Q and subsequent filings with the Securities and Exchange Commission. The above examples are not exhaustive and new risks emerge from time to time. There may be additional risks that we consider immaterial or which are unknown. Such forward-looking statements are based on our current beliefs, assumptions, expectations, estimates and projections regarding our present and future business strategies and the environment in which we expect to operate in the future. These forward-looking statements speak only as of the date made. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in our expectations with regard thereto or any change of events, conditions or circumstances on which any such statement was based, except as required by law.

Investor Relations & Media Contacts

Sarah Inmon (786) 812-3233 [email protected]

NORWEGIAN CRUISE LINE HOLDINGS LTD. NON-GAAP RECONCILING INFORMATION (Unaudited)

The following table sets forth selected statistical information:

Adjusted Gross Margin, Net Per Diem, and Net Yield were calculated as follows (in thousands, except Net Yield, Net Per Diem, Capacity Days, Passenger Cruise Days, per Passenger Cruise Day and Capacity Day data):

Gross Cruise Cost, Net Cruise Cost, Net Cruise Cost Excluding Fuel and Adjusted Net Cruise Cost Excluding Fuel were calculated as follows (in thousands, except Capacity Days and per Capacity Day data):

________________________ (1)   Non-cash deferred compensation expenses related to the crew pension plan and other crew expenses, which are included in payroll and related expense. (2)   Non-cash share-based compensation expenses related to equity awards, which are included in marketing, general and administrative expense and payroll and related expense. (3)   Severance payments related to restructuring costs are included in marketing, general and administrative expense. (4)   Expenses related to the redeployment of Norwegian Joy from Asia to the U.S. and the closing of the Shanghai office, which are included in other cruise operating expense and marketing, general and administrative expense.

NORWEGIAN CRUISE LINE HOLDINGS LTD. NON-GAAP RECONCILING INFORMATION (Unaudited)

________________________ (1)   Non-cash deferred compensation expenses related to the crew pension plan and other crew expenses, which are included in payroll and related expense. (2)   Non-cash share-based compensation expenses related to equity awards, which are included in marketing, general and administrative expense and payroll and related expense. (3)   Restructuring costs related to workforce reductions are included in marketing, general and administrative expense.

Adjusted Net Income (Loss) and Adjusted EPS were calculated as follows (in thousands, except share and per share data):

________________________ (1)   Non-cash deferred compensation expenses related to the crew pension plan and other crew expenses, which are included in payroll and related expense and other income (expense), net. (2)   Non-cash share-based compensation expenses related to equity awards, which are included in marketing, general and administrative expense and payroll and related expense. (3)   Restructuring costs related to workforce reductions are included in marketing, general and administrative expense. (4)   Losses on extinguishments of debt and modification of debt are included in interest expense, net.

EBITDA and Adjusted EBITDA were calculated as follows (in thousands):

________________________ (1)   Primarily consists of gains and losses, net for foreign currency remeasurements. (2)   Non-cash deferred compensation expenses related to the crew pension plan and other crew expenses, which are included in payroll and related expense. (3)   Non-cash share-based compensation expenses related to equity awards, which are included in marketing, general and administrative expense and payroll and related expense. (4)   Restructuring costs related to workforce reductions are included in marketing, general and administrative expense.

Net Debt was calculated as follows (in thousands):

Free Cash Flow and Adjusted Free Cash Flow were calculated as follows (in thousands):

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Hurricane Beryl Hits Cruise Stocks

Scott McIntyre / Bloomberg / Getty Images

Key Takeaways

  • Shares of Royal Caribbean, Carnival, and Norwegian fell Monday as Hurricane Beryl forces cruises to reroute.
  • Hurricane Beryl, a Category 4 storm, is the strongest-ever Atlantic hurricane in the month of June.
  • Royal Caribbean's chief meteorologist warned of a dangerous hurricane season in a post on social media platform X.

Shares of cruise operators fell Monday as a Category 4 hurricane forced ships to reroute in the Atlantic Ocean, a potential early indicator of a dangerous hurricane season this year. 

Hurricane Beryl, reportedly the strongest hurricane on record to ever hit the Atlantic Ocean in the month of June, made landfall Monday in Grenada.

Some cruises slated to visit Caribbean islands are being rerouted, according to reports citing emails sent to customers. That could become a pattern this hurricane season, Royal Caribbean ( RCL ) Chief Meteorologist Craig Setzer warned Friday in a post on the social-media network X.

“The deep tropical Atlantic is very much alive very early in the season, and unfortunately is likely a harbinger of things to come this summer & fall,” Setzer wrote. 

Royal Caribbean shares sank more than 1.5% in Monday afternoon trading, while Carnival ( CCL ) fell nearly 5%, and Norwegian Cruise Line ( NCLH ) dropped about 5%. 

Bloomberg. “ The Strongest-Ever June Hurricane Is a Dire Sign for Storm Season. ”

National Hurricane Center. “ Hurricane Beryl Public Advisory ."

Cruise Blog. “ Hurricane Beryl Disrupts Major Cruise Line Itineraries. Here Are the Major Changes So Far .”

X Platform. “ @CraigSetzer 3:25 a.m. June 28, 2024. ”

cruise lines financial trouble

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  • Norwegian Cruise Line

So is NCL ( NCLH ) in financial trouble ?

By JIMESOPUS , January 4, 2023 in Norwegian Cruise Line

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3,000+ Club

With the sudden cut's in entertainment ( example Kinky Boots, Syd's and Priscilla ).

The increase in the DSC couple with the announced (  I haven't seen anything official from NCL, yet ) cuts in cabin service.

Along with missing ports to reduce the carbon footprint ( reduce fuel consumption ).

Increased cost of the beverage package ( starting 1/1/2023 ) and restaurants ( Teppanyaki and Moderno )

Along with the 9% layoffs this past month in Miami.

I'm wondering is it the boost year end numbers, which is due 2/27/2023 or are they in trouble?

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njhorseman

Surely this thread's title is a rhetorical question. 

Haha

Teppanyaki is also reducing the food quality too. ive been seeing a new menu being posted that filet mignon is being replaced with a ny strip piece of meat

I think a fair question.  I gave little hope as the shutdown kept extending yet they are here today.  I was wrong.

Delicate balance to get folks onboard and for us die yards here who know too much.  IMO they could care less about regular, frequent cruisers whether insides, balcony, club, suite, or Haven.  They can penny pinch onboard yet send three a week glossy flyers to our house.  Maybe give option of little extra onboard and save flyers to help carbon footprint, for our convenience, of course.

Thanks

All cruise lines are experiencing severe financial strain due to significant debt acquired during and post COVID. Additionally, the public demand for cruising has not yet returned to pre COVID.

Cruise lines are reacting by cutting services, entertainment, workforce, and other costs while intentionally raising fees for internet, beverage packages,  daily service charges. It is across the board service cuts and material fee increases on a weekly basis by every cruise line.

We have zero cruises booked on any cruise line since the overall fares charged are no longer justified by the vacation delivered, in our opinion. We are not against paying more if more is delivered in the experience. Right now, the environment is pay more, get less. Pay more for internet, get crappy speeds; pay more for beverage packages, get less selection; pay more for service charges, get less service; pay more for specialty dining, get fewer meals. NCL makes so many changes to itineraries and onboard product offering that we don't even know what we are booking anymore.

17 minutes ago, shof515 said: Teppanyaki is also reducing the food quality too. ive been seeing a new menu being posted that filet mignon is being replaced with a ny strip piece of meat

That is disappointing.  

34 minutes ago, luv2kroooz said: All cruise lines are experiencing severe financial strain due to significant debt acquired during and post COVID. Additionally, the public demand for cruising has not yet returned to pre COVID.   Cruise lines are reacting by cutting services, entertainment, workforce, and other costs while intentionally raising fees for internet, beverage packages,  daily service charges. It is across the board service cuts and material fee increases on a weekly basis by every cruise line.   We have zero cruises booked on any cruise line since the overall fares charged are no longer justified by the vacation delivered, in our opinion. We are not against paying more if more is delivered in the experience. Right now, the environment is pay more, get less. Pay more for internet, get crappy speeds; pay more for beverage packages, get less selection; pay more for service charges, get less service; pay more for specialty dining, get fewer meals. NCL makes so many changes to itineraries and onboard product offering that we don't even know what we are booking anymore.

I have to agree with you. I have a cruise on Dawn in March of this year. I have a trans Atlantic booked for April 2024 that I got at a decent price tad over 5k for two balcony including the air.  I was looking at cruises for this summer, Europe, forget about it, between the cost of the cruise and airfare it was just too dam much. So instead we will do 9 days in France splitting our time between Paris and Normandy. Yes, the air is still outrageous but saving thousands over a cruise after air, lodging, food and drink factored in. We are renting through VRBO so we don’t have to eat all our meals out.

The one cruise I was eyeing as it stopped in Le Harve and we want to tour Normandy was well over 2k pp for an inside before airfare. That 2k pp used to buy us a balcony. Port fees and taxes are also high.

Then for august was looking at a 5 day from NY to Bermuda, no air involved, 4 of us, 2 ocean view cabins, after every thing was added on pushing 7k for a 5 day cruise.

The days of a cruise being a decent vacation at a decent price is long over, if it keeps going the way it is it will be only the very well to do that can afford it

500+ Club

gatorchinsky

1 hour ago, shof515 said: Teppanyaki is also reducing the food quality too. ive been seeing a new menu being posted that filet mignon is being replaced with a ny strip piece of meat

 Very disappointing. They are also adding a $10 supplement dining plan charge to Le Bistro’s beef tenderloin.

We got a great deal on a Greece/Italy cruise using up FCC and military discount so this might be our last NCL cruise for awhile. Cutbacks on the things we enjoyed with NCL just don’t make it a decent value anymore.

ColeThornton

ColeThornton

8 hours ago, JIMESOPUS said: ......or are they in trouble?

"Trouble" would be a major understatement.

250+ Club

SimplyAlbert

We have two cruises booked for 2023 and nothing after that.   One is a cruise that I booked on Pride of America during the shutdown and got a great deal on.  The other is an upcoming one on the Breakaway of of New Orleans (which we also did last year).  If we notice a decline in food/entertainment/service we'll probably skip cruising in 2024 and do something else.  Right now I'm going to wait to see how it goes.

Same thing happened with Disney World.   We used to be frequent visitors, but with the rise in costs, cuts in everything else, poor food quality, etc. we haven't been back since 2017.   Once we started branching out into other vacations (and our children are all adults now), we've had no desire to go back.

cruiseny4life

cruiseny4life

2 hours ago, shof515 said: Teppanyaki is also reducing the food quality too. ive been seeing a new menu being posted that filet mignon is being replaced with a ny strip piece of meat

The menu we had this week showed NY Strip, yet we still received a filet. We'll, I didn't, because I ordered shrimp, scallops, and squid.

Compared to members on this site, I would consider myself as a newbie, I threw this out last night after reading a few threads about the current conditions aboard the BA, GA and the Escape ( the next three cruises that are booked and fully paid ). I was wondering if I'm over reacting to the all the changes, I know changes will occur but it appears now that the combined effect will hurt the cruising experience.

All-ready2cruise

To me, the question is, how could they not be in trouble and if they are not in trouble, what would that tell us?  

5 minutes ago, JIMESOPUS said: Compared to members on this site, I would consider myself as a newbie, I threw this out last night after reading a few threads about the current conditions aboard the BA, GA and the Escape ( the next three cruises that are booked and fully paid ). I was wondering if I'm over reacting to the all the changes, I know changes will occur but it appears now that the combined effect will hurt the cruising experience.      

Read through the financial documents. They are in trouble. I want them to not be in trouble, but they are. They have massive debt. Their profit from 2019 would barely cover (might not quite cover) just their debt service now. They haven't been profitable yet. They claim that'll come in mid-2023. We will see about that. 

Personally, I want them to continue existing. Cruising NCL is good vacationing. Even if I have reasons to whine occasionally. 

The situation makes me think of this ( from "Big Bang") :

Leonard Hofstadter: Alright, well let me see if I can explain your situation using physics. What would you be if you were attached to another object by an incline plane wrapped helically around an axis?

Sheldon Cooper: Screwed.

Leonard Hofstadter: There you go.

50+ Club

msbrookelyn

2 hours ago, dexddd said: I think a fair question.  I gave little hope as the shutdown kept extending yet they are here today.  I was wrong.   Delicate balance to get folks onboard and for us die yards here who know too much.  IMO they could care less about regular, frequent cruisers whether insides, balcony, club, suite, or Haven.  They can penny pinch onboard yet send three a week glossy flyers to our house.  Maybe give option of little extra onboard and save flyers to help carbon footprint, for our convenience, of course.

They could DEFINITELY cut back on the mailings. Heres the thing... if most of us are going to cruise, we are already browsing and planning. Vacations are not something that you can trick people into doing. If it's happening, it's happening. You don't need to mail me postcards. 

4 minutes ago, msbrookelyn said: They could DEFINITELY cut back on the mailings. Heres the thing... if most of us are going to cruise, we are already browsing and planning. Vacations are not something that you can trick people into doing. If it's happening, it's happening. You don't need to mail me postcards. 

i noticed whenever i log into my NCL account, within a few days i get a post card with the free at sea advisement. seems dumb and waste of money to be printing it out and mailing

In trouble as in going out of business? Nope. In trouble as in not making enough money to keep the shareholders happy? Yep.  Expect belt tightening industry wide. 

Yesimapirate

21 minutes ago, ggTexasGal said: The situation makes me think of this ( from "Big Bang") : Leonard Hofstadter: Alright, well let me see if I can explain your situation using physics. What would you be if you were attached to another object by an incline plane wrapped helically around an axis? Sheldon Cooper: Screwed. Leonard Hofstadter: There you go.

Totally disagree.  NCL isn't going anywhere.   Nor are the other 3 major players.

Much like the post-911 airline situation, the only ones truly in danger are the creditors.  At some point,  the cruiseline holding companies with refinance to extend their debt.  Eventually,  if it become too much they'll delist and either go bankrupt or to private equity.  

November was the busiest month for bookings in the company's history.  They have a track record of profitability.  Wall St is not going to let them disappear. 

30,000+ Club

BirdTravels

3 hours ago, shof515 said: Teppanyaki is also reducing the food quality too. ive been seeing a new menu being posted that filet mignon is being replaced with a ny strip piece of meat

And the breakfast steak was changed from filet to NY strip. The world is coming to an end.   

And the smoked salmon on the buffet is now a salmon moose again  😔

And veggie burgers are only made to

order vs being on the buffet (since 90% were being thrown out due to lack

if interest). 

57 minutes ago, JIMESOPUS said: Compared to members on this site, I would consider myself as a newbie, I threw this out last night after reading a few threads about the current conditions aboard the BA, GA and the Escape ( the next three cruises that are booked and fully paid ). I was wondering if I'm over reacting to the all the changes, I know changes will occur but it appears now that the combined effect will hurt the cruising experience.      

One observation on your question. Nothing that you've noted NCL is doing will have a noticeable effect on their 2022 results. Some of the more significant actions such as increasing the daily service charge, increasing the beverage package prices and decreasing cabin attendant services are only taking effect in 2023. The 2/27/23 financial reports cover 2022 so nothing that is happening in 2023 can possibly affect the 2/27 financial report .

It's all about the financial trouble NCLH is in . All this does for the 2/27 report is give NCL the ability to say 'Look at everything we're doing to improve our results in the future."  Forward looking statements are essentially hot air to make the company's financials look as good as possible.

PATRLR

1 hour ago, cruiseny4life said: The menu we had this week showed NY Strip, yet we still received a filet. We'll, I didn't, because I ordered shrimp, scallops, and squid.

I wonder how you knew.  If I took a strip and cut it to about the size of a tenderloin, how would you know the difference in a Teppenyaki environment?

16 minutes ago, BirdTravels said: salmon moose

That's giving me a mental picture I won't easily forget.  🤣

18 minutes ago, BirdTravels said:   And veggie burgers are only made to order vs being on the buffet (since 90% were being thrown out due to lack if interest). 

If that's the case they should have been making them to order all along, or at least not making nearly as many in advance. 

28 minutes ago, Yesimapirate said: Totally disagree.  NCL isn't going anywhere.   Nor are the other 3 major players.   Much like the post-911 airline situation, the only ones truly in danger are the creditors.  At some point,  the cruiseline holding companies with refinance to extend their debt.  Eventually,  if it become too much they'll delist and either go bankrupt or to private equity.     November was the busiest month for bookings in the company's history.  They have a track record of profitability.  Wall St is not going to let them disappear. 

Meant as a "humor post" only, since, if you we don't want to be paying more to continue cruising, we might feel "wrapped helically around an axis"!

Illbcruzn4life

49 minutes ago, msbrookelyn said: They could DEFINITELY cut back on the mailings. Heres the thing... if most of us are going to cruise, we are already browsing and planning. Vacations are not something that you can trick people into doing. If it's happening, it's happening. You don't need to mail me postcards. 

 I put them right into the recycling bin. When looking at cruises I don't even consider NCL anymore.

Still has me wondering how a cabin @$799pp turns into a $3000 bill. What with the FREE stuff and the overinflated port charges/govt fees. Wonder why NCL's are usually twice what other cruise lines are charging.

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cruise lines financial trouble

Would-be travelers out thousands of dollars after last-minute cancellations. What to do

A dream cruise cancelled at the last minute. problems getting a refund of the thousands they paid. it happens. what can consumers do to avoid a frustrating and costly situation.

cruise lines financial trouble

Settled in the Delta Sky Lounge at Tampa International Airport in late March, Lynne Schrum and her husband, David Hall, were ready to head out on their two-and-a-half-week vacation to Western Europe.

This wasn’t the original trip the couple had booked as first-time customers of Boston-based cruise company Vantage Deluxe World Travel. In January 2021, the St. Petersburg couple had reserved an Aegean Sea cruise that was set to sail 15 months later. But that cruise was subsequently postponed to October 2022, which did not work for them. 

Vantage instead gave the couple the option to go on their “tulips” cruise, which would take them to Brussels for a few days before an eight-day cruise in the Netherlands, with an excursion to Paris to round out their time abroad.

“We’re sitting there, congratulating ourselves, getting excited,” Schrum said. “Then the phone rang.”

It was a representative from Vantage, warning them not to get on the plane and to collect their baggage. Their trip had been canceled.

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“My husband is sitting there, watching my face. He was pretty sure someone in our family had died,” she said. 

She tried to reason with the man on the other line. She thought about all the things they had booked, the tickets they had to the opera and a trip to Giverny to see Monet’s gardens, and figured they could still go, even if they wouldn’t be going on the cruise. But five minutes later, she said, their seats on the plane were canceled.

“At first, we were just shocked. Now we’re angry,” said Schrum, who had paid $33,000 for the trip. “It’s all of the people who are so distressed about it.”

Schrum said she was told a refund would take 14 business days. Now it’s been more than 40.

“They’ve had this money for a very, very, very long time. We’re retired. We are not young,” said Schrum, who is 76. “It’s inconceivable that this amount of money would be gone from our savings.”

The couple's plight is due to issues with Vantage, but everyday travelers and vacationers run into problems with vacation bookings for any number of reasons.

In the weeks following the couple’s cancelled cruise, Vantage faced a ransomware attack that left customers without a way to contact the company for at least a week. It had also canceled at least five other cruises.

So what can consumers do to avoid a frustrating and costly situation with a trip? What should they do if they find themselves in a similar position? The Palm Beach Post asked travel experts for their advice.

Pay with a credit card when you make that initial travel booking

Vantage Travel offered customers discounts for paying with an eCheck or directly through their checking account. Both couples who spoke with The Post had paid by check. But travel experts say there’s no level of protection by doing this, and consumers should instead book travel with a credit card.

“The credit card company is going to give you protection against financial insolvency,” said Dan Meister, who owns Boca-Raton based Top Group Travel.

At least when paying via credit card, you can try to dispute a charge if you paid for a service that did not come to fruition and attempts to get a reimbursement directly from the company have been exhausted.

“As soon as they cancel, they’re good at getting the money back,” said Laurence Gore, a Fort Lauderdale attorney who specializes in travel and tourism law.

Research a company before you agree to be their customer

Before putting down that credit card, though, do your research. 

“If you’re thinking of booking through a tour company, see the cancellations or comments,” Gore said. But be wary of the timing of those complaints. “If you find problems during the pandemic, that doesn’t necessarily mean the company has a problem now.”

Look up reviews on search engines and social media or through the Better Business Bureau. 

You can also consider booking with travel companies that have certain certifications or proven financial stability, such as members of the U.S. Tour Operators Associations who put up $1 million in collateral in the event something happens, or suppliers listed with Trusted FIT Services, said Jeffrey Ment, a travel industry lawyer from Hartford, Conn. These companies can give travelers some extra peace of mind.

Consider a travel agency. It may be old school, but they can vet travel companies for you.

With Airbnb and direct-to-consumer companies like Vantage being the more popular way to travel, consumers these days tend to handle their own travel plans. But licensed, bonded and insured travel agencies, albeit old school, can offer customers options with vetted companies or tell you if a company has caused issues in the past. Additionally, agents can provide support to customers if a cancellation occurs.

“We can elevate (an issue) within our network where they have more leverage with these suppliers,” said Kurt Crowl, president of Travel Leaders of the Palm Beaches. “If you don’t book with a travel agent, you don’t have that leverage.”

Added consultant Phyllis Horodner: “Without a travel agent, you’re on your own.”

Keep good records of travel plans and communications with companies you are working with

You should always keep a paper trail of your travel plans. That means making sure you have a record of expenditures and receipts, tickets and correspondence with the company. On the company’s end, customer service calls are typically recorded and kept on file. It’s not a bad idea after such a phone call to write down what was discussed and email it to the company to confirm as another form of records.

Get travel insurance (but read the terms and conditions closely)

Getting travel insurance can help in the event you get sick or have an accident, but depending on the policy, it could also help if the company files for bankruptcy or is otherwise “not able to meet their obligations,” Meister said. The travel company will offer their own insurance, but it’s possible to get insurance through a travel agent or other provider. Meister said it’s better to get a policy around the time of your first deposit for the trip, but it can also be purchased right up until the start of the trip.

It’s important to read the fine print, both of the travel insurance as well as the company’s refund and cancellation policies. 

Think carefully about your options once a problem has surfaced

Experts suggest sending letters to the attorneys general of your home state and that where the company operates, submitting comments to the Better Business Bureau and filing a complaint with the Federal Maritime Commission.

If all else fails, you might want to consider the legal route and hire an attorney who knows travel law, such as one with the International Forum of Tourism and Travel Advocates, experts said. Even if you win in small claims court, because of the limitations you may not get back all your money.

Unclear how many people's travel plans disrupted by Vantage, but the company cited reasons for canceling trips

It's unclear precisely how many people were impacted by these cancellations. The Post sent inquiries to one of the company's executive vice presidents as well as the former outside communications firm, but did not receive a response at the time of publication. A month-old Facebook group dedicated to those who had been spurned has almost 300 members. Nevertheless, some Vantage customers are waiting on reimbursements in the tens of thousands of dollars.

The reasons trips were thwarted are varied, as Vantage's founder and chairman Henry Lewis wrote in two letters to consumers published to the website. On April 28, Lewis said four trips to the Netherlands had been canceled “due to the ship’s readiness,” and two trips to Egypt were canceled over safety concerns. 

“With the recent U.S. State Department Sudan travel advisory, given the proximity, we are closely monitoring our trips to Egypt until further notice for the safety of our guests,” the letter from Lewis reads.

Furthermore, the message says that a ransomware attack discovered on April 20 affected Vantage’s call center, website, email and “other internal systems” for at least eight days, but none of the trips had been affected specifically by this incident.

Dozens of complaints have been filed with the Better Business Bureau. And those who are trying to get their money back say they’re getting unclear timelines from the company.

One couple canceled by Vantage said they will now look elsewhere for booking travel

Charles and Lea Moskowitz, both 75 of Daytona Beach, are also waiting for a refund of more than $20,000 after their “tulips” trip was canceled. The couple had traveled with Vantage for more than two decades, visiting all seven continents over 28 incident-free trips.

The couple’s first trip in the summer of 2000 took them to Scandinavia, the Baltics and part of Russia. This past April, they were looking forward to their 29th trip to the “Stans,” as Charles called it, traveling through Turkmenistan, Uzbekistan and Kazakhstan for the first time.

Two weeks prior to the voyage, Vantage notified them the trip had been rescheduled for later that year, he said. That wasn’t going to work with their schedule, so the couple opted to go on a cruise they had done before, but didn’t mind.

Then, a voicemail message popped up on their answering machine. “There’s some bad news,” the Vantage representative said, according to the recording shared with The Post. The ship was not ready, the representative said, who then asked to call an 800 number to review their options.

“We’ve never had an issue like this before,” Charles Moskowitz said.

Despite the company's previously blemish-free track record with Moskowitz and his wife, he'll book future travel elsewhere.

Hannah Morse covers consumer issues for The Palm Beach Post. Drop a line at  [email protected] , call 561-820-4833 or follow her on Twitter  @mannahhorse .

What happens if my cruise line goes bankrupt or shuts down?

Michelle Couch-Friedman

When Susan Group and her husband booked their summer vacation last year, they never considered that the cruise line could go bankrupt. But that's exactly what happened.

The couple had been looking forward to sailing from Lisbon to London aboard Crystal Cruises' Crystal Symphony in a deluxe veranda cabin. Those plans ended abruptly when the cruise line canceled their trip and suddenly shut down.

That left the Groups wondering how to get their money back from the bankrupt cruise line. They weren't the only ones with that question.

For more cruise news, reviews and tips, sign up for TPG's cruise newsletter .

The pandemic has been particularly hard on the cruise industry. Eleven cruise lines have gone out of business during the global crisis. Unfortunately, each time one of those companies sank, thousands of blindsided customers were inevitably left behind empty-handed – no cruise and no refund.

Those losses didn't have to happen.

Here's what you can do before and after a cruise line declares bankruptcy to reduce your chances of bearing the financial brunt of the company's shutdown.

Protect your cruise investment during the planning process

cruise lines financial trouble

Protecting yourself against losing your money to a cruise line's insolvency begins in the planning phases of your trip.

Use a professional travel advisor

One way to ensure you don't book your next cruise with a line teetering on the edge of extinction is by using a travel advisor. Those professionals are in the know and won't book their clients on cruise lines in immediate danger of going under.

You can find a professional travel advisor specializing in cruises on the American Society of Travel Advisors website.

Related: Is it better to book a cruise through a travel agent? We say yes

Do your research about the cruise line

If you're doing your own travel planning, it's imperative that you do some basic research before booking anything.

Although bankruptcies and shutdowns often seem sudden to consumers, they really aren't — and the internet will tell the tale. In today's digital age, it's nearly impossible for a cruise line to hide its financial problems from the world.

Looking through online cruise communities such as Tripadvisor, Cruise Critic and others will give you an idea if the cruise line you're considering is on the verge of collapse. Remember that complaints do not always come in chronological order, so you may need to scroll around.

Don't be lured by an unbelievable deal

Sure, everyone wants a great deal, but some deals should be avoided. If a cruise line that typically sells luxury tours that cost $15,000 or more starts offering the same trips for $5,000, don't fall for it.

Cruise lines on the brink of bankruptcy often offer unbelievable deals to generate revenue. The appearance of heavily discounted trips — especially ones in which the customers are expected to pay in cash — is always a giant red flag.

Related: How to get a deal on a cruise

Purchase travel insurance that includes bankruptcy protection

Many cruise ship passengers do not consider their need for travel insurance until it's too late. I often receive requests for help from troubled travelers who didn't purchase travel insurance but then find themselves in a situation where they need it.

Taking a cruise without the protection of travel insurance is a bad idea. A comprehensive travel insurance policy can cover a passenger for medical treatment aboard the ship, trip delays, cancellations, medical evacuation and, yes, even bankruptcy of the cruise line.

Related: Best cruise travel insurance plans

Using a site such as InsureMyTrip , you can compare various policies based on your personal information and pick one that provides the coverage you need.

It's important to note that not all travel insurance policies provide bankruptcy protection, so it is critical to review the document carefully.

Generally, you have 10-14 days after purchase to read that policy in its entirety before it becomes nonrefundable. During that time, you'll want to verify the policy contains the bankruptcy clause that will allow you to file a claim should your cruise line go belly-up before your trip.

Do not purchase a 'waiver product' from your tour operator

If you book directly with a private tour operator or cruise line, you may be offered a hybrid type of travel protection sold by the company. These are waiver products, and they can give the unaware customer the impression that they've purchased traditional travel insurance when they haven't.

A cancel-for-any-reason waiver product, such as the one Vantage Deluxe World Travel sold to its customers, is problematic in significant ways. As many of its customers were disturbed to find out after purchase, if the traveler canceled their cruise for a covered reason, Vantage was responsible for paying the claim. If the passenger canceled for any other reason, Vantage was responsible for providing a future trip.

This type of travel protection is particularly precarious if the tour operator is in financial distress.

If you are insured by a cruise line or tour operator, and it goes bankrupt or ceases to operate, you'll have no protection at all. Always outsource your travel insurance to a neutral third party, and make sure to read and understand the policy.

When you buy directly from a travel insurance provider, you will almost always spend less and receive a more comprehensive policy.

Related: 10 mistakes to avoid when booking your cruise

Pay for your cruise with a credit card

Some troubled cruise lines and tour operators will offer significant discounts to customers willing to pay for their trip with a bank transfer. This is almost always a mistake for the customer — especially if the company has financial difficulties and could go bankrupt before you take your trip.

The Fair Credit Billing Act allows consumers who pay for goods and services with a credit card to request a chargeback if the merchant doesn't hold up its end of the transaction.

Related: Use these credit cards to maximize your next cruise vacation

If you pay for your cruise with a credit card, you will have the power of the FCBA behind you. Your credit card company will be able to reverse those charges should your cruise line be unable to provide the trip you purchased.

Remember, the FCBA doesn't apply to debit card purchases, checks or bank transfers.

Read and print your cruise contract

Recently, unusual requests for help from customers of Vantage Travel have hit my inbox. The tour operator canceled these confused customers' cruises and then deleted the online paper trail associated with the trip — including their trip itineraries and invoices.

Consumers should always download their contract and any additional correspondence and make hard copies. If a cruise line goes bankrupt or ceases to operate, your online details can quickly become inaccessible. If you need to prove what you are owed later, you will need that documentation.

How to get your money back after a cruise line announces its bankruptcy

cruise lines financial trouble

If the worst happens and your cruise line goes bankrupt or ceases to operate, and you've followed the pre-booking guidance, you'll be in a favorable position to get your money back. But even if you've made some missteps along the way or booked so far ahead that it was impossible to predict your cruise line's possible demise, you can still do some things to claw back your cash.

File a credit card dispute

This one is easy. If you've paid for your cruise with a credit card and the line ceases to operate and cancels your trip, you can file a chargeback. Your credit card company will protect you — at least it should.

Unfortunately, I know from experience that sometimes when consumers ask their credit card companies to begin a chargeback investigation, they may be given inaccurate guidance from the front-line customer service representatives. That's because those agents may not be completely familiar with the Fair Credit Billing Act and the protection it provides for consumers.

The customer service representatives may erroneously cite a 60-day time limit from the date that the consumer first made the purchase to file a dispute. If this happens, ask to speak to a supervisor and let that person know that you are aware of your rights under the Fair Credit Billing Act.

Related: What is the Fair Credit Billing Act, and how does it affect consumers?

As a consumer advocate, I've spoken to numerous bank executives who have repeatedly assured me that the chargeback deadline for consumers is based on the expected date of service. This is an important detail for cruise line passengers, who often purchase trips months or years before the scheduled departure date.

If your cruise line cancels your trip and doesn't promptly refund your cash, here's how to file your credit card dispute:

  • Call the number on the back of your credit card to open the dispute.
  • Your bank will ask you to upload your proof of cancellation and other supporting evidence into the online portal.
  • You will receive a conditional credit while the bank conducts its investigation.
  • Your cruise line will have 30 days to respond to the dispute.
  • If the cruise line doesn't provide evidence to your bank supporting the charge during that time, the conditional credit will become permanent.

Ask your bank to reverse the transfer

If you've paid for your trip in the past 60 days with a direct transfer, your bank may be able to help. Contact your bank ASAP if your cruise line goes bankrupt, declares insolvency or ceases to operate, and you've made a bank transfer to the company in the past 60 days.

File a travel insurance claim

If you've purchased a travel insurance policy that includes a bankruptcy or insolvency clause, it's time to contact your provider. In some cases, you may need to wait until the company officially files for bankruptcy, or you may be able to file a claim based on "cessation of operations." Check the specific language in your policy.

Check if your state has a Seller of Travel retribution fund

Only five states have Seller of Travel laws (California, Florida, Hawaii, Iowa and Washington). These laws require Sellers of Travel to register and, in some cases, pay into a retribution fund to protect consumers from the fallout of a potential bankruptcy of the operator.

Check with your state's attorney general to find out if your state has such a fund and if your situation qualifies.

Join the bankruptcy class

For consumers, the worst route to a refund when a cruise line goes bankrupt is joining the bankruptcy class. If that's all that is available in your situation, then you'll need to lower your expectations going into the ordeal.

Bankruptcy proceedings can take months and even years to resolve. Worse, consumers are always last on the list when the settlement eventually comes. As unsecured creditors, customers will stand behind vendors, lawyers and other secured creditors.

Once bankruptcy is announced, you will likely receive a postcard notification inviting you to join the class with instructions on how to do it.

Set a Google alert

If a bankrupt cruise line has not kept careful records, not all customers will receive a timely announcement about the case. If you are affected by a company's impending bankruptcy, you should set a Google notification to alert you whenever the business is mentioned in the news. That way you will not miss out on any important information or deadlines to claim any compensation you may be owed.

Planning a cruise? Start with these stories:

  • The 5 most desirable cabin locations on any cruise ship
  • The 8 worst cabin locations on any cruise ship
  • A quick guide to the most popular cruise lines
  • 21 tips and tricks that will make your cruise go smoothly
  • 15 ways cruisers waste money
  • 15 best cruise ships for people who never want to grow up
  • What to pack for your first cruise

Large fight breaks out on Carnival cruise ship, video footage shows

cruise lines financial trouble

A large fight broke out on a Carnival Cruise Line ship, video footage shared on social media shows.

  • The incident occurred in the buffet area of the Carnival Paradise around 3 a.m. on the final day of a Caribbean cruise in early June.
  • Security personnel intervened and escorted one group out of the room and the other group exited the opposite direction, a passenger said.

Get more news like this delivered to your inbox by signing up for our Travel newsletter here . 

A video posted to YouTube on Saturday by passenger Nick Richardson appears to show a group of fellow guests throwing chairs, tackling each other and hitting one another in the buffet area of the Carnival Paradise. Richardson previously shared the video on TikTok, but the social media platform removed the clip , he told USA TODAY.

The 43-year-old happened upon the conflict when he went in search of pizza around 3 a.m. on the final day of a Caribbean cruise in early June. “I woke up because I was starving,” said Richardson, who lives in Clearwater, Florida. He saw security guards speaking to groups of guests.

The passengers were “talking trash to each other” in the eatery before the clash escalated, though he wasn’t sure how the initial argument began. Richardson estimated that roughly 10 to 15 people participated in the physical fight.

Security personnel intervened and escorted one group out of the room and the other group exited the opposite direction, he said. The video shows chairs overturned and dishes strewn across the floor and tables – with at least one plate broken – in the aftermath.

“Carnival Paradise’s security team intervened in an incident that took place on June 6,” spokesperson Matt Lupoli said in an emailed statement. “As is our policy, we will not tolerate such behavior and the guests involved were fined and will not sail on Carnival Cruise Line again.”

Richardson stressed the fight was an “isolated incident” and that he thoroughly enjoyed the rest of the trip, which marked his first cruise. He even booked another sailing with Carnival shortly after returning home.

“The security and just all of the staff there, they were very, very good,” he said.

The incident comes after a Carnival guest pleaded guilty in February to assaulting another passenger , at one point smashing a glass in their face.

Nathan Diller is a consumer travel reporter for USA TODAY based in Nashville. You can reach him at [email protected].

The Key Points at the top of this article were created with the assistance of Artificial Intelligence (AI) and reviewed by a journalist before publication. No other parts of the article were generated using AI. Learn more .

cruise lines financial trouble

Carnival Cruise shares health warning about a gross problem

A nytime you put thousands of people in close quarters, you run the risk of viruses, illnesses, and other problems being passed among people. 

That's not a problem unique to cruise lines since you can catch a cold, the flu or even pinkeye at a hotel, in a theme park, at a casino or even at the grocery store.

Cruise lines, however, know they face special challenges, so they try to take every possible step to stop any potential health issue from spreading. Some of those steps are simple. They clean and disinfect public areas regularly and enforce/encourage handwashing and the use of hand sanitizer.

Related: What to expect on a cruise ship during a hurricane

During the Covid pandemic, all the major cruise lines took steps to improve their cleaning procedures and air filtration. The system isn't perfect, but the reality is that widespread, Covid, flu, or norovirus outbreaks on cruise ships have been rare.

Cruise ships also move to different destinations, where passengers can pick up a virus or, in the case of a recent Carnival Cruise Line passenger, something that can spread very quickly if it's not kept in check.

Carnival Brand Ambassador John Heald shared the passenger's story as a warning to others.

Sign up for the Come Cruise With Me newsletter to save money on your next (or your first) cruise.

Cruise passenger calls for a warning

Heald often uses his popular Facebook page to share information with Carnival passengers as a sort of backup to anything the cruise line communicates. It's impossible for any cruise line to cover every scenario, so he often shares problems or issues that people might avoid if they know about them.

"John my daughter was on the ----. Her daughter who is my granddaughter, had her hair braided in Nassau. When she got back to the boat she discovered she had insects in her hair. They were head lice. She is upset that nobody warned her that this could happen. The shop on the boat didn’t have any lice-killing shampoo," she wrote.

The aggrieved grandmother also felt the cruise line should have warned her family (and others about this potential scenario).

"There should be warnings from you and Carnival not to have hair braided," she added.

Want the latest cruise news and deals? Sign up for the Come Cruise With Me newsletter.

Carnival's Heald responds and shares good news

While Heald was sympathetic to the affected girl, he also shared good news for other passengers that speaks well to how the cruise line handled the situation.

"Let me start by saying that this post was made two weeks ago. I immediately spoke to the housekeeping manager and let him know so that they do a full special clean in the cabin. He reported there were no concerns after that clean and no reports since," Heald wrote.

So, while lice did get on board the unnamed ship, they did not appear to spread. Heald also shared some common-sense advice about not just hair braiding but any service provided beachside or in an environment that's not likely to have a lot of regulation. 

"Having your hair braided used to be the law while on a cruise and these days it still is very popular except it is a little more regulated than the free for all of a few years ago," he wrote. "The ladies in some ports will use the same brush and comb to decorate hundreds of heads and clean them by giving them a quick wash in the sea. I will then suggest that if you have this done ashore in any port to think of bringing your own brush and comb."

Heald did point out that there are major differences between the workers in the port area and people on the street and at the beaches.

"These days in Nassau and other ports there are nice regulated places to get your hair braided and my advice would be let them do it, as I said with your own brush and comb and ignore the street braiders," he added.

Related: Get the best cruise tips, deals, and news on the ships from our expert cruiser

Carnival Conquest and Carnival Dream are docked in Nassau. DBK Lead.

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cruise lines financial trouble

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Should Value Investors Buy Norwegian Cruise Line (NCLH) Stock?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Norwegian Cruise Line ( NCLH Quick Quote NCLH - Free Report ) . NCLH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 11.60. This compares to its industry's average Forward P/E of 16.93. Over the past year, NCLH's Forward P/E has been as high as 26.42 and as low as 8.48, with a median of 13.20.

We also note that NCLH holds a PEG ratio of 0.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NCLH's PEG compares to its industry's average PEG of 0.55. NCLH's PEG has been as high as 0.33 and as low as 0.20, with a median of 0.23, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NCLH has a P/S ratio of 0.9. This compares to its industry's average P/S of 0.92.

Finally, we should also recognize that NCLH has a P/CF ratio of 6.38. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.07. Over the past year, NCLH's P/CF has been as high as 16.32 and as low as -1,471.18, with a median of 6.59.

Investors could also keep in mind Travel Leisure Co. ( TNL Quick Quote TNL - Free Report ) , an Leisure and Recreation Services stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Travel Leisure Co. is currently trading with a Forward P/E ratio of 7.36 while its PEG ratio sits at 2.28. Both of the company's metrics compare favorably to its industry's average P/E of 16.93 and average PEG ratio of 0.55.

Over the last 12 months, TNL's P/E has been as high as 8.80, as low as 5.57, with a median of 7.24, and its PEG ratio has been as high as 2.47, as low as 0.32, with a median of 0.90.

Travel Leisure Co. also has a P/B ratio of -3.34 compared to its industry's price-to-book ratio of 3.56. Over the past year, its P/B ratio has been as high as -2.36, as low as -3.87, with a median of -3.12.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Norwegian Cruise Line and Travel Leisure Co. are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NCLH and TNL feels like a great value stock at the moment.

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  1. Viking Cruises in Financial Trouble: Exploring the Impact of COVID-19

    cruise lines financial trouble

  2. Carnival Cruise Line in Financial Trouble: An In-Depth Analysis

    cruise lines financial trouble

  3. Are Cruise Lines in Financial Trouble? Filing Bankruptcy? Let's Talk

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  4. Viking Cruises in Financial Trouble: Exploring the Impact of COVID-19

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  5. Are Viking cruises in financial trouble? (2024)

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  6. Breaking Down Cruise Line Financial Terms

    cruise lines financial trouble

VIDEO

  1. Cruise lines offering summer discounts to help fill empty cabins

  2. Cruise lines & airlines Exposed 🤫 #vaction #trip #travel

  3. Cruise Ship in Trouble

  4. Cruise Lines Secret Discount! 🛳️ 💵 #finance #money

  5. Cruise Ship Hits Pier, Trouble in Cozumel, MSC Approved for Galveston, NCL Jaxport

  6. Carnival Passenger in Trouble

COMMENTS

  1. Sinking in Debt of Over $73,000,000,000: The Big Three Cruise Lines

    The "big three" cruise companies, Carnival Corporation, Royal Caribbean, and Norwegian Cruise Line Holdings, have also recently rolled back their policies of requiring pre-cruise COVID-19 testing for most guests boarding their cruise ships. Not coincidentially, all cruise lines have announced an explosion in the sale of cruises.

  2. Huge Debt for Top Three Cruise Lines But Positive Signs Ahead

    As of November 4, 2020, the total outstanding debt amounts to $19.12 billion, consisting of $17.63 billion in long-term debt and $1.49 billion in current debt. Adjusted for $3.02 billion in cash ...

  3. Cruise ship companies are still paying for COVID interrupting ...

    Cruise passenger revenue in Miami fell 95% when ships were ordered to stop sailing. It already tops $100 million this fiscal year, on par with 2019, the year before the pandemic put a stop to cruises.

  4. Cruise lines' stocks fall after Fed rate hike raises concerns about

    Shares of Carnival, Norwegian and Royal Caribbean fell this week after the Federal Reserve again hiked rates, raising worries about cruise companies' huge debt loads and their ability to recover ...

  5. Cruise operators will keep on sailing despite debt piles

    Globally, the number of cruise passengers hit 31.7mn last year, surpassing the pre-pandemic level by 7 per cent, according to the Cruise Lines International Association. That number is forecast to ...

  6. Help! Our Cruise Operator Went Bankrupt and We Are Out $17,905

    I also bought the Worldwide Trip Protector plan from Travel Insured International (for $1,954), in part because it covered financial default and bankruptcy of cruise lines. Vantage then canceled ...

  7. Crystal Cruises' Epic Bankruptcy Leaves Customers, Agents Out $100

    Crystal Cruises's Epic Demise Leaves Customers Out $100 Million—or More. The company went from being worth an estimated $1 billion to having a bank account of zero in weeks. Those left in the ...

  8. Why your favorite cruise line probably isn't going out of business

    Norwegian Cruise Line Holdings is the parent company of Norwegian Cruise Line, Regent Seven Seas Cruises and Oceania Cruises. Add in Carnival Corporation's nine brands, ... None of these lines have indicated they are in financial trouble, and some of them have suggested that they, too, can withstand a cruising shutdown lasting many more months. ...

  9. CCL Stock Plummets to Barely Above $7.00 As Carnival ...

    Carnival's struggles with its enormous debt continues to place its viability in jeopardy. Another analyst (Motley Fool) explained the stark financial reality which Carnival and other cruise lines were facing as of last August:"Cruise companies are laden with debt — $36.4 billion at Carnival (as well as $23.8 billion at Royal Caribbean and almost $14 billion at Norwegian Cruise Line ...

  10. Parent company of Carnival, Princess, Holland America is dialing back

    Taken together, the ship retirements and slowing of ship orders at Carnival Corporation are creating an unprecedented period of slow growth for the company when it comes to cruise ship capacity. During Wednesday's conference call, Carnival Corporation chief financial officer David Bernstein said the company's total fleet capacity in 2023 would ...

  11. Covid could not sink cruise lines

    Royal Caribbean faces $8bn of debt — a third of its total — maturing in the next 18 months. Carnival and Norwegian have $4.1bn and $1.8bn, respectively, coming due over the same period. In May ...

  12. Crystal Cruises suspends operations for three months amid financial

    Crystal Cruises is suspending operations for at least three months in the wake of a financial crisis at its parent company, Genting Hong Kong.. The Miami-based luxury line announced late Wednesday that it would halt operations in the coming days for all three of its vessels currently operating -- Crystal Serenity, Crystal Symphony and Crystal Endeavor -- through April 29.

  13. Norwegian Cruise Line Holdings Reports Higher Than Expected Loss

    Norwegian Cruise Line Holdings (NCLH) reported its financial results for the fourth quarter and full year ending December 31, 2022, on Monday, February 28. While the company reported strong ...

  14. Washout As Disney Cruise Line Reveals $325 Million Loss

    The Disney Wonder in Ketchikan, Alaska. Despite the heavy losses, Magical Cruise Company's five directors were paid 17.4% more last year with their combined pay hitting $2.2 million. The highest ...

  15. Carnival Stock Takes a Dive, What's Going On?

    Not according to investors, as the stock price took a hit on Wednesday, going down nearly 14%. After the disappointing third-quarter financial results the company released in September 2022 ...

  16. Norwegian Cruise Falls as Raised Profit Outlook Fails to Impress

    By Redd Brown. May 1, 2024 at 6:55 AM PDT. Listen. 1:30. Norwegian Cruise Line Holdings Ltd. plunged after its improved profit outlook disappointed investors' high expectations amid an industry ...

  17. Viking Cruises Founder Loses 66% Of Wealth As Pandemic Hits ...

    Cruise industry troubles. According to the latest annual list produced by Norwegian financial magazine Kapital, Hagen has seen his personal wealth drop from $6.28 billion down to an estimated $2.1 ...

  18. Why Cruise Line Stocks Plunged Again Today

    Not only is the broader market's decline dragging down their share prices, but there are also fears that the companies are seeing pricing pressure for tickets. Carnival ( CCL 0.43%) fell by as ...

  19. Norwegian Cruise Line Holdings Reports First Quarter 2024 Financial

    Norwegian Cruise Line Holdings today reported financial results for the first quarter ended March 31, 2024 and provided guidance for the second quarter and full year 2024. First Quarter 2024 Highlights: Generated total revenue of $2.2 billion, a 20% increase compared to the same period in 2023 on 8% capacity…

  20. Norwegian Cruise Line Holdings Reports Strong Fourth Quarter and Full

    As of December 31, 2023, the Company had total debt of $14.1 billion and total Net Debt of $13.7 billion and continues to expect improvement in its Net Leverage. The Company repaid $1.9 billion of ...

  21. Hurricane Beryl Hits Cruise Stocks

    Shares of cruise operators fell Monday as a Category 4 hurricane is forcing ships to reroute in the Atlantic and could be an early indicator of a dangerous hurricane season this year.

  22. So is NCL ( NCLH ) in financial trouble

    Cruise lines are reacting by cutting services, entertainment, workforce, and other costs while intentionally raising fees for internet, beverage packages, daily service charges. ... It's all about the financial trouble NCLH is in . All this does for the 2/27 report is give NCL the ability to say 'Look at everything we're doing to improve our ...

  23. Would-be travelers out thousands of dollars after last-minute

    Drop a line at [email protected], call 561-820-4833 or follow her on Twitter @mannahhorse. Would-be cruisers with Boston-based Vantage Travel are waiting for their money back after last-minute ...

  24. What happens if my cruise line goes bankrupt or shuts down?

    Your cruise line will have 30 days to respond to the dispute. If the cruise line doesn't provide evidence to your bank supporting the charge during that time, the conditional credit will become permanent. Ask your bank to reverse the transfer. If you've paid for your trip in the past 60 days with a direct transfer, your bank may be able to help.

  25. Norwegian Cruise Line (NCLH) Ascends But Remains Behind Market: Some

    In the latest market close, Norwegian Cruise Line (NCLH Quick Quote NCLH - Free Report) reached $18.75, with a +0.48% movement compared to the previous day. The stock trailed the S&P 500, which ...

  26. Carnival cruise passengers fined, banned after fighting onboard

    A large fight broke out on a Carnival Cruise Line ship, video footage shared on social media shows. The incident occurred in the buffet area of the Carnival Paradise around 3 a.m. on the final day ...

  27. Carnival Cruise shares health warning about a gross problem

    Carnival's Heald responds and shares good news. While Heald was sympathetic to the affected girl, he also shared good news for other passengers that speaks well to how the cruise line handled the ...

  28. Norwegian Cruise Line (NCLH) Moves to Buy: Rationale Behind the Upgrade

    Earnings Estimate Revisions for Norwegian Cruise Line. This cruise operator is expected to earn $1.43 per share for the fiscal year ending December 2024, which represents a year-over-year change ...

  29. Should Value Investors Buy Norwegian Cruise Line (NCLH) Stock?

    One company value investors might notice is Norwegian Cruise Line (NCLH Quick Quote NCLH - Free Report) . NCLH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The ...

  30. Step Into a Leadership Role

    He/she works to publish new content in our newsroom on a quarterly basis. This is a key position for communicating cruise ship medicine activities and connecting with members by sharing their stories and adventures in our newsroom and email communications. Councillor (2-year term) The Councillor represents the section at the Council meeting.