Norwegian Quantifies Financial Impact of Cuba Changes

Norwegian Sky in Havana

Norwegian Cruise Line Holdings has provided an update on the new Cuba travel regulations and the estimated financial impact to full year 2019 expected financial results.

“Our three brands are working diligently to accommodate the needs of our guests and travel partners as we quickly modify itineraries to meet the new Cuba travel regulations,” said Frank Del Rio, president and chief executive officer of Norwegian Cruise Line Holdings, in a prepared statement. “We share in the disappointment that comes with these changes especially on such short notice and sincerely appreciate the cooperation and understanding of our guests for this inconvenience. Our brands have put in place generous compensation programs that offer guests and travel partners a compelling, value-packed alternative.”

The extremely abbreviated timeframe to modify our itineraries to be in compliance with the new travel restrictions to Cuba has exacerbated the impact to the company’s earnings estimates, Norwegian said, in a statement.

The restrictions impact all three of the company’s cruise brands, with approximately 25 percent of the impacted capacity days attributable to the combined sailings on the Oceania Cruises and Regent Seven Seas Cruises brands, the majority of which were Cuba-intensive premium priced itineraries.

ailings that included a Cuban port of call represented slightly more than 3 percent of the company's remaining sailings in 2019 for all three brands.

The modification of these itineraries, the substantial discounts offered to guests for them to remain on their booked cruise, the accommodation of cancellations and changes to reservations, incremental marketing investment to support the compressed sales cycle for the modified voyages, along with the protection of travel agent commissions will result in an estimated impact to Adjusted EPS for full year 2019 of approximately $0.35 to $0.45. 

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