Norwegian Cruise Line cancels Asia voyages due to coronavirus

Earnings

Tourists take photos at the Overseas Passenger Terminal as the Norwegian Jewel cruise ship is in lock down while health authorities test a man for Coronavirus on February 14, 2020 in Sydney, Australia.

Lisa Maree Williams | Getty Images

Norwegian Cruise Line has canceled its voyages in Asia through the third quarter of 2020 and expects to take an earnings hit of 75 cents per share for the full year because of the coronavirus, the company said Thursday. 

The news sent shares down nearly 4 percent to $50.15.

The cruise line said the virus had forced it to cancel, modify or redeploy 40 voyages across all three of its brands and provide compensation to customers. The company said that 21 cancelled Asia voyages on its cruise ship, Norwegian Spirit, have been redeployed to the Eastern Mediterranean for summer 2020 with an “extremely condensed booking window.”

Any guest or crew who have traveled to China, Hong Kong or Macau in the past 30 days, regardless of nationality, are not allowed to board Norwegian’s vessels. In a press release, Norwegian said it was implementing the measure as part of an effort to “protect the health, safety, security and well-being of its guests and crew.”

Norwegian also said that it was too early to full account for the effects of coronavirus on its business that may result from lower demand for travel and tourism globally. 

The company forecast 2020 adjusted earnings between $5.40 and $5.60 per share, excluding any impact from the outbreak. Analysts expected earnings $5.51, according to IBES data from Refinitiv.

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