August 13, 2009.

NCL’s latest quarterly earnings report is surprisingly good for the company, and even more importantly a nice turn around for a very tough economic environment. NCL showed a profit in the quarter just ending of $15.4 million, compared to a loss of $27 million in the same quarter last year. Reports are generally compared to the same quarter from the previous year because it reflects the same seasonal condtitions.

What is especially surprising is that this profit comes in a much tougher economic climate than we were in just a year ago. Yes, it seems likee we have been in this recession forever but it really only hit us hard last September.

The company credits higher onboard revenue and the 109% occupancy factor with the turnaround. Indeed, 109% is one of the highest occupancy factors we have heard from a cruise line in awhile. The extra 9% comes from accounting for additional beds in rooms normally made to hold just two berths. A ship’s occupancy is generally counted as two people per cabin, with pull-downs and sofabeds considered over capacity.

NCL still notes a weakness in ticket prices, and revenue was actually down for the quarter, but profit was up due to greater efficiency and higher passenger capacity. Net Yield was lower by 7.7% due to lower ticket pricing but offset by higher spending onboard and lower net cost per day with lower fuel prices and especially saving on payroll after having reduced the fleet of NCL America to just one ship.

NCL says the rest of 2009 is already substantially booked, but that cruise fares remain much lower than last year.

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