Norwegian boosts operating income 37% in 2011

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Norwegian Cruise Line reported substantial increases in operating income and net revenue for the full year 2011.

Operating income rose 37% to $316 million, up from $230 million in 2010. Net revenue increased 10.8%, primarily due to the addition of the 4,000-passenger Norwegian Epic to the fleet in June 2010, along with a 3% increase in net yield, the company said.

The improvement in net yield came primarily from higher ticket prices. Norwegian in early 2011 increased fares by about 10% across the board.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the year increased 24.9% to $506 million, and revenue increased 10.3% to $2.2 billion.

Norwegian said that fuel price per metric ton increased 14.2% to $571.

Looking at fourth-quarter results, Norwegian reported adjusted EBITDA increased 38.7% to $88.3 million.

“This improvement was a result of an increase in net revenue to $361.8 million from $355.2 million and a decrease in net cruise cost to $274 million from $292 million in 2010,” the line said.

Net yield was up 2.5% in the quarter. Net loss narrowed to $1.9 million on revenue of $488 million, versus a loss of $40 million on revenue of $483 million in the fourth quarter of 2010, said Norwegian.

Follow Donna Tunney on Twitter @dttravelweekly.

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