(Reuters) -Norwegian Cruise Line Holdings missed first-quarter revenue and profit estimates on Wednesday, as rising concerns about tariff uncertainty have pressured demand for the cruise operator’s premium sea voyages.
Shares of the company were down about 10% in early trading.
After benefiting from a post-pandemic surge, Norwegian Cruise has seen a slowdown in new bookings as consumers shy away from its high-end cruises and private island getaways amid looming concerns about a potential recession.
The cruise operator, which has been working on cost-savings measures such as streamlining its supply chain, also saw pressure from increased investments related to ship maintenance, more dry dock days and new fleet expansions.
The company said it is updating full-year 2025 net yield forecast – profit made per passenger after costs – to reflect recent booking trends and changes in the macroeconomic environment.
On a constant currency basis, annual net yield is expected to increase between 2.0% and 3.0%, compared with its previous forecast of 3.0%.
“Americans seem to be a little bit more comfortable staying close to home given what’s going on in the macroeconomic environment, that is where we are seeing slight volatility on rounding out that Q3 European destinations,” said CFO Mark Kempa in post earnings call.
Norwegian Cruise maintained its annual profit forecast of $2.05 per share and said bookings for the 12-month period were softening but remain within the optimal range.
In contrast, peer Royal Caribbean raised its annual profit forecast on robust bookings and lower fuel costs during its latest quarterly earnings.
Norwegian Cruise’s quarterly revenue declined 3% to $2.13 billion from a year earlier. Analysts estimated $2.15 billion, as per data compiled by LSEG.
It logged adjusted profit of 7 cents per share, below estimates of 9 cents.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Krishna Chandra Eluri)
