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(Recasts paragraph 1 with details on third-quarter profit forecast, adds shares in paragraph 2)
Aug 1 (Reuters) – Norwegian Cruise Line Holdings forecast third-quarter profit below estimates on Tuesday, as higher fuel costs reverse its gains from pent-up demand for cruise bookings and raised ticket prices.
Shares of the company, which appointed a new CEO in March, were down 7.2% in premarket trading. They have risen more than 80% this year.
Cruise operators have been wrestling with elevated costs associated with food, raw materials, fuel, a stronger U.S. dollar and labor due to the pandemic that were exacerbated by the Russia-Ukraine war.
Despite the cruise company undertaking price hikes, it could not protect margins from the challenges and spiraling marketing expenses, which have also eroded the benefits of a recent resurgence in demand from affluent customers for leisure travel.
The company expects third-quarter adjusted profit of 70 cents per share, compared with analysts’ average estimate of 79 cents, according to data from Refinitiv.
However, the cruise operator expects full-year adjusted profit of 80 cents per share, compared with its earlier forecast of 75 cents. (Reporting by Granth Vanaik in Bengaluru; Editing by Shinjini Ganguli)
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