The passenger cruise ship Norwegian Prima arrives in the French Mediterranean port of Marseille. (Photo by Gerard Bottino/SOPA Images/LightRocket via Getty Images)
Gerard Bottino | Light rocket | Getty Images
Norwegian cruise line companies said Wednesday it would cancel its stops in Israel this year and in 2024 as that country’s war with the militant group Hamas continues to escalate.
The company lowered its full-year outlook, also citing the wildfires in Maui, Hawaii. Norwegian said it now expects adjusted earnings per share of 73 cents for the year, up from its previous forecast of 80 cents.
The company’s shares fell more than 3% on Wednesday.
The conflict in Israel has also affected broader cruises to the Middle East beyond just stops in Israel, the company said on its earnings call. Rival cruise line last week Royal Caribbean Group said canceled sailings to Israel will negatively impact earnings for the year by 3 cents per share.
Norwegian remains optimistic that the conflict in Israel will be short-lived, company executives said on the earnings call. So the company is optimistic about the possibility of returning to the Middle East soon.
“One of the key strengths and differentiators in our industry is our ability to reposition our assets, which we have done with heightened tensions in the Middle East,” CEO Harry Sommer said on the call. “The safety and well-being of our guests and crew members is without a doubt our number one priority.”
The cruise line and the Maui wildfires forced Norwegian to adjust some itineraries in August. Although regular shutdowns resumed in September, the company said there was a slowdown in bookings – which has since improved to near-normal levels – that was concentrated in the fourth quarter.
The company cut its 2023 occupancy outlook to 102.6% from 103.5%, citing the disruptions that affected fourth-quarter performance.