Norwegian Cruise Line Lowers Profit Forecast, Cancels Israel Routes Amid Conflict and Maui Wildfire Aftermath

Norwegian Cruise Line's profit forecast cut comes amid higher fuel costs, declining bookings due to Israel-Hamas conflict and Maui wildfires, reducing earning projections to 73 cents per share from 80 cents and trimming 2023 occupancy outlook.

Norwegian Cruise Line, the world's third-largest cruise line, lowered its annual earnings projection to 73 cents per share, down from an original forecast of 80 cents.
The company attributed the downward adjustment to a combination of heightened tensions in the Middle East prompting cancellation of cruises to Israel, and the aftermath of Maui wildfires dissuading tourism.
Despite lowering its forecast, Norwegian performed well in its third quarter, with revenue amounting to $2.54 billion, largely driven by strong customer demand.
In addition to the Israel cancellations, Norwegian has also decided to halt trips to selected regions in the Middle East beyond 2023 but remains hopeful that the situation is temporary.
Higher expenses linked to food, fuel, raw materials, and labor as well as an appreciating US dollar have further strained the company's profits.