Leisure travel demand remains strong. Norwegian Cruise Line Holdings Ltd. reported better-than-expected profits in the fourth quarter.

Benefiting from strong demand for leisure travel, Norwegian Cruise Line Holdings Ltd. (NCLH.US) reported better-than-expected fourth-quarter profit on Thursday. However, the company's annual profit guidance provided was lower than Wall Street expectations, indicating that the cruise operator will need to increase cost-saving efforts. After the financial report was released, the stock rose by approximately 2% in pre-market trading on Thursday. For the quarter ending December 31, the company's adjusted earnings per share were 26 cents, exceeding market expectations of 11 cents. Total revenue was $2.1 billion, in line with analysts' expectations. The fourth-quarter net yield (a key industry metric) increased by 9.0% year-over-year, surpassing the company's guidance of 210 basis points, primarily due to strong onboard spending. Since the pandemic, demand for ocean vacations has surged among U.S. cruise operators including Norwegian Cruise Line Holdings Ltd., Carnival Corporation (CCL.US), and Royal Caribbean Cruises Ltd. (RCL.US), leading to increased cruise prices. Norwegian Cruise Line Holdings Ltd. stated that consumer demand for its 2025 full-year and 2026 sailings and brands is strong. President and CEO Harry Sommer said, "2024 was a significant milestone in the strategic transformation of Norwegian Cruise Line Holdings Ltd. These achievements would not have been possible without the dedication of our over 41,000 shoreside and shipboard team members, driving us to achieve record revenue, net yield growth, adjusted EBITDA, and excellent financial performance." Looking ahead to full-year 2025, the cruise operator expects adjusted earnings per share of $2.05, slightly below the average analyst expectation of $2.08. It anticipates full-year adjusted net income of approximately $1.07 billion. On a constant currency basis, the cruise operator expects a 1.25% increase in adjusted net cruise costs per capacity day (excluding fuel) for 2025, while also achieving a 3% net yield growth.