High Fuel Prices, Soft Caribbean Market Said to Cost NCL Corp. $28.1 Million Loss

NCL Corp. said May 18 it recorded a net loss of $28.1 million in the first quarter, the result in part of a softening of the Caribbean cruise market and the impact of high oil prices.

Company revenue for the quarter was $422.4 million. The company reported $349 million in revenue and a $6 million profit in the first quarter of 2005.

Lower disposable income –which economists attribute largely to higher gas prices and to increased costs of consumer goods related to fuel spikes- is a principal factor in the weaker Caribbean market, he noted. But higher-priced cruise offerings for Hawaii and Alaska have remained to see high demand.

While NCL will not add capacity any time soon, the company continues to work on a new generation of cruise ships, which remain in the design phase. The company has placed no new orders for ships as yet.