Star Cruises has reported a net loss of $100.5 million on revenues of $436.6 million for the year ended Dec. 31, 2008, compared to a net loss of $201 million on revenues of $2.6 billion for 2007. Last year’s results is for Star only, treating Norwegian Cruise Line (NCL) as a separate 50 percent owned entity, while the 2007 results included NCL.
The 2008 results include a loss of $104 million from Star Cruises’ 50 percent ownership of NCL.
According to Star, NCL saw a net revenue increase of 2.9 percent in 2008 compared to 2007 due a 6.9 percent increase in net revenue yield, offset by a 3.7 percent decrease in capacity days. The increase in net yield was primarily due to higher passenger ticket pricing and onboard and other revenues, Star said in a prepared statement. The decrease in capacity days was due to ships leaving the fleet, which was partially offset by the Norwegian Gem, entering service in October 2007. The increase in onboard and other revenues came from gaming operations and the art concessionaire.
Ship operating expenses were up, mainly due to higher fuel expenses, which were offset by lower payroll expenses resulting from NCL’s reduced Hawaii engagement.
Also included in the 2008 results was an impairment cost amounting to $128.8 million from the cancellation of the contract to build the second F3 ship.
For Star Cruises, net revenue decreased 0.8 percent due to lower net revenue yield and occupancy, partially offset by increased capacity. The decrease in net revenue yield was due to lower gaming income. The capacity increase was the Superstar Aquarius, which started service in June 2007, offset by the non-operation of the Wasa Queen and the MegaStar Taurus since October and November 2008, respectively.