Overview

• Norwegian Cruise Line, the world's third-largest cruise line, lowered its annual earnings projection to 73 cents per share, down from an original forecast of 80 cents.
• The company attributed the downward adjustment to a combination of heightened tensions in the Middle East prompting cancellation of cruises to Israel, and the aftermath of Maui wildfires dissuading tourism.
• Despite lowering its forecast, Norwegian performed well in its third quarter, with revenue amounting to $2.54 billion, largely driven by strong customer demand.
• In addition to the Israel cancellations, Norwegian has also decided to halt trips to selected regions in the Middle East beyond 2023 but remains hopeful that the situation is temporary.
• Higher expenses linked to food, fuel, raw materials, and labor as well as an appreciating US dollar have further strained the company's profits.