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NORWEGIAN Cruise Line Holdings (NCLH) overnight reported a US$4 billion full year loss, with the COVID-19 pandemic seeing the company’s revenue decline 80% to US$1.3 billion.
Chief Executive Officer Frank Del Rio said “while 2020 has been without a doubt the most challenging year in the company’s 50-plus year history, our team responded to the unprecedented environment with swift and decisive action”.
NCLH has total debt of US$11.8 billion and cash of US$3.3 billion, with an average cash burn of US$190 million over the last quarter of last year – which included about US$15 million monthly of additional launch-related expenses as it “began preparing vessels for a potential return to service in early 2021, in connection with the CDC Conditional Order, which did not materialise,” Del Rio said.
Incremental costs included crew re-staffing, repositioning and provisioning of vessels, implementation of new health and safety protocols and a “ramp-up of demand-generating marketing investments which helped further stimulate the strong future demand the company is experiencing”.
The NCLH Chief Executive Officer said bookings for 2022 were very encouraging, despite reduced sales and marketing investments and “a travel agency industry that has not been at full strength for months”.
Del Rio noted the company stopped offering future cruise credits some months ago, with full cash refunds now paid in the event of a cancellation.
With voyages now suspended until 01 Jun, Del Rio said it would take roughly 90 days to relaunch operations in the USA once the company receives the green light.