Norwegian Cruise Line shares fall 10% as soft outlook, wider losses eclipse strong demand

Norwegian Cruise Line shares fell much than 10% connected Tuesday aft the institution posted wider losses than expected and offered brushed guidance for the year, contempt persistent question demand.

The cruise institution reported 4th fourth losses of $1.04 per share, much than analysts' estimates of 85 cents.

Norwegian is besides projecting full-year net per stock of 70 cents successful 2023, good beneath expectations of $1.04. The guidance comes arsenic the institution struggles to trim the costs and indebtedness weighing down the business. Norwegian had $13.6 cardinal in debt arsenic of Dec. 31.

As Norwegian tries to ascent backmost to profitability, it didn't connection overmuch assurance for the archetypal fractional of 2023.

CEO Frank Del Rio said the company's archetypal 2023 4th "will beryllium the highest outgo quarter," but added that the 2nd fractional volition beryllium better. Norwegian is projecting losses of 45 cents per stock successful the archetypal quarter, 10 cents higher than Wall Street had anticipated.

Norwegian said its costs proceed to rise, exacerbated by inflation, adjacent arsenic it returns much ships to service. Del Rio did not regularisation retired an equity rise to negociate debt, but helium said it wouldn't beryllium "prudent to contented much equity to de-lever the company," adjacent though "there's a batch of enactment to do."

Strong request is giving the institution anticipation it tin thrust retired the difficulties.

"We've seen very, precise beardown grounds – adjacent grounds booking levels dating backmost to November," said Del Rio. "So we simply don't spot a weakening consumer."

Norwegian has lagged down its competitors, though others are inactive posting losses arsenic the manufacture battles higher substance prices and involvement rates.

Royal Caribbean saw its stock jump aft posting narrower than expected 4th fourth losses and bookings earlier successful February. Morgan Stanley had upgraded the rival company successful January, naming it the "superior cruise operator" coming retired of the pandemic.

–CNBC's Seema Mody contributed to this report.