The Star Cruises Group has reported net income of $56.2 million, or $1.29 per share, on revenues of $447.4 million for the third quarter ended Sept. 30, 2002, compared to net income of $39.6 million, or $0.95 per share, on revenues of $379.8 million for the third quarter of 2001.
Star attributed the results to a 14.4 percent capacity increase, a higher load factor - 104 percent this year, compared to 102 percent last year - and slightly higher net yield. In addition, Star said it achieved a 4.4 percent costs savings in the quarter from lower ship operating, selling, general and administrative expenses per capacity day as compared with the third quarter of last year. The cost reduction was achieved through greater economies of scale and from more stringent cost controls.
Norwegian Cruise Line (NCL) reported a net yield increase of 2.0 percent in the third quarter, while yields for Orient Lines were down, resulting in a combined 2.0 percent yield reduction for the North American operations in the third quarter of 2002 over the same period in 2001.
NCL also recorded a 28.6 percent capacity increase with the Norwegian Sun and the Norwegian Star and has much-improved results for the first nine months of the year to date, which is attributed to the now smooth running of Freestyle Cruising, the new ships, and improved passenger revenues and onboard earnings, as well as its Homeland Cruising program, with over 90 percent of the brand's capacity deployed out of U.S. and Canadian ports.
The Norwegian Dawn enters service Dec. 7 and the first of the Project America ships is scheduled for delivery in April or May 2004.
The Orient brand, meanwhile, has had what the company called a challenging nine months, with changed itineraries and reduced pricing on both its exotic and Mediterranean programs.
In Asia, the Star Cruises brand operated with 9.7 percent less capacity days compared to the same quarter a year ago.