NCL registers another red Q1

[Jason]

NCL registers another red Q1

Source: South Florida Business Journal

Blaming a very competitive pricing environment, the first quarter loss more than doubled at NCL Corp., which saw its revenue fall 15 percent.

The Miami-based cruise line said it lost $60.8 million on revenue of $490.8 million for the period. For the first quarter the year before, NCL said it lost $28.8 million on revenue of $426.6 million.

The company does not report earnings per share because it is not publicly traded.

NCL said it had to significantly lower its cruise ticket prices for its inter-island cruises in Hawaii.

In April, the company said it would withdraw its Pride of Hawaii vessel from that market, effective early 2008. The ship is to be reflagged, renamed Norwegian Jade and deployed in Europe for the summer of 2008.

"The European market has shown strong growth resulting from a combination of an increase in the number of Europeans taking cruises and strong demand from U.S. passengers finding dollar-denominated cruising to be an economically attractive way to experience Europe with the weak dollar," NCL said.

Still, Colin Veitch, NCL president and chief executive officer, said the company remains committed to the Hawaiian market.

NCL noted it also experiences a very competitive pricing environment in the Caribbean. Demand for Alaska, though still relatively strong, has begun to show some signs of slowing, the company added.

[jacketwatch]

Earlier it was reported here that RCI was in the red as well. Are there ANY cruise lines in the black?

[elfed]

Well, I'm not surprised to read this. Gloomily I have predicted that cruising will become saturated over the next 5 to 10 years.Very few lines will be making a profit whilst others will merge making mega cruise lines with ultra mega ships. More and more alternative dining rooms will be added to ships forcing us to pay for most of our main meals if we want great service with a good menu choice. The greed now is apparent amongst cruise lines. Without mentioning names, it is becoming obvious that taking passengers for everything they can squeeze out of them is a high priority. I would like to be a fly on the wall during a ship's hotel manager talk to his employees prior to the start of a cruising season. I bet we all would be shocked to hear of the ways put forward to entice the passenger to pay for "the extras". Yet the cruise lines still say their profit margin is not good enough. They are biting the hand that feeds them!

Regards,

James.

[elfed]

Well, I'm not surprised to read this. Gloomily I have predicted that cruising will become saturated over the next 5 to 10 years.Very few lines will be making a profit whilst others will merge making mega cruise lines with ultra mega ships. More and more alternative dining rooms will be added to ships forcing us to pay for most of our main meals if we want great service with a good menu choice. The greed now is apparent amongst cruise lines. Without mentioning names, it is becoming obvious that taking passengers for everything they can squeeze out of them is a high priority. I would like to be a fly on the wall during a ship's hotel manager talk to his employees prior to the start of a cruising season. I bet we all would be shocked to hear of the ways put forward to entice the passenger to pay for "the extras". Yet the cruise lines still say their profit margin is not good enough. They are biting the hand that feeds them!

Regards,

James.