Norwegian Cruise Line forecasts 4% yield increase in 2014

By Tom Stieghorst
Norwegian Cruise Line forecast that revenue yields will increase 4% this year, following increases of 4.3% last year and 1.6% in 2012.

Yields, a measure of revenue per passenger day, are a rough indicator of pricing.

The cruise line also reported a net profit of $101.7 million for 2013, down from $168.5 million a year earlier. Revenue rose 13.7%, to $2.57 billion.

Norwegian said that 2013 income, when adjusted for a one-time debt prepayment, was $295.8 million, a 45.4% increase from $173.1 million a year earlier.

It attributed a rise in cruise costs, excluding fuel, of 3.6% to three drydocks and launch-related expenses for new ships. Norwegian debuted Norwegian Breakaway in May 2013 and Norwegian Getaway earlier this month.

Net interest expense was $282.6 million and included $160.6 million in charges related to prepaying and refinancing some of its credit facilities and redeeming some senior notes. Excluding those, net interest expense fell 36%, to $122 million.

Follow Tom Stieghorst on Twitter @tstravelweekly.
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