Kloster ruise has reported net income of $6.3 million on revenues of $234.5 million for the second quarter ended June 30, 1993, compared to $2.1 million on revenues of $195 million for the same quarter in 1992.

Operating income for the second quarter was $17.6 million compared to $16.7 million for the same period last year. The increase in revenue was attributed to the addition of the Dreamward and the Windward, which also increased operating expenses as well as expenses for advertising and passenger service personnel, according to a statement from Kloster.

Kloster reported a loss of $10 million on revenues of $441.1 million for the first six months of 1993 compared to a loss of $600,000 on revenues of $377 million for the first six months of 1992 (exclusive a gain from the sale of the Sunward).

Operating income was $21.3 million in 1993 compared to $27.9 million last year. The company also stated that its interest expenses have increased by $11.2 million due to the additional debt incurred to acquire the Dreamward the Windward.

Product Enhancement

In his first day on the job August 9, the new President and CEO of Kloster Cruise, Adam Aron, announced a product enhancement program intended to make the Norwegian Cruise Line product the "best in its category in the cruise industry."

Product upgrades will be offered in all cabin categories on all the ships beginning August 27 and will include: a complimentary welcome fruit basket; turn-down pillow mints every evening; and a new bathroom amenity package. NCL will also offer a new full embarkation luncheon buffet.

"Product improvements will come fast and furious at NCL, " said Aron who has made a commitment to focus on product enhancement as a central element in NCL's strategy.

At press time, shares for Vard, parent company to Kloster Cruise, traded for NOK 37.50 on the Oslo stock exchange, up from recent trading levels.


According to Kloster, the introduction of the two new sister ships, the Dreamward and the Windward, have generated renewed enthusiasm and interest for NCL's product which should favorably impact future divisional results.

The operating result for Royal Viking Line was said to be slightly weaker in the second quarter compared to last year's, primarily because the Royal Viking Sun underwent a 13-day drydocking in April.

Royal Cruise Line meanwhile achieved a marked improvement in this year's second quarter results, according to Kloster. This was due to higher load factors and net per diems than during the same period last year.

Kloster also stated that both RVL and RCL have experienced increased competition in their European sailing programs resulting in price pressures.

Cruise Industry News Email Alerts