The Star Cruises Group, including Norwegian Cruise Line (NCL), has reported net income of $39.6 million, or $0.95 per share, on revenues of $379.8 million for the third quarter ended Sept. 30, 2001, compared to net income of $21.5 million, or $0.68 per share, on revenues of $428.9 million for the third quarter of 2000.
Star said that revenues decreased as a result of a 4.8 percent decrease in capacity days and a 6.9 percent decrease in yields. (Star Cruises saw a larger decrease in yields than did NCL.)
Star said it has responded to what it called the general slowdown in the world economy and to the impact of the Sept. 11 attacks in the U.S. by delaying plans to swap the Superstar Aries and the Norway; by focusing on core markets such as Singapore, Hong Kong and North America and promoting “homeland cruising” to address people’s fear of flying; withdrawing the Superstar Taurus from Japan; merging NCL and Orient Lines shoreside operations; and by adding a second ship to the Hawaiian market in 2002.
The Norwegian Wind, originally scheduled to operate in Asia until January 2003, will instead operate 10- and 11-day cruises from Honolulu starting September 27, 2002 through April 2003.
Star said it has also introduced other measures to streamline its cost structure such as salary restructuring for employees and more centralized back-office functions.
Combined, these efforts are expected to reduce costs by five percent in 2002.
For the nine-month period ended Sept. 30, 2001, Star reported net income of $48.9 million, or $1.17 per share, on revenues of $1,042 million, compared to net income of $25.3 million, or $0.79 per share, on revenues of $981.4 million for the same nine months of 2000.
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